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FX levels to watch – EUR/USD, GBP/USD, USD/JPY

The euro shows no sign of weakening, while cable has come under pressure over the past 24 hours. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Euro and pouund
Source: Bloomberg

EUR/USD to go higher?

Weakness below $1.1172 for EUR/USD would be the catalyst for selling, so as long as this holds we will look for another push to $1.13 and higher.

In the case of a drop through $1.1172 further support comes into play around $1.1080. 

GBP/USD pressured by poor GDP numbers

Poor GDP numbers and a fresh YouGov poll have piled the pressure on GBP/USD, but it continues to hold the $1.2850 level that has been such a vital support this month.

A bounce from here still leaves the pair in consolidation mode, so we look for the possibility of a return to $1.2965 and higher. Only a close below $1.28 really suggests a definitive bearish development.

USD/JPY getting bearish

The bears have regained control, with USD/JPY dropping below Wednesday’s low of ¥111.46. The next target is ¥110.80, and below this the 200-day simple moving average (SMA) at ¥110.05.

If real bearish momentum develops, we could see a push back to the April lows at ¥108. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.