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

It looks like we are in for some euro weakness, while cable has recovered from election-related jitters. 

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 notes
Source: Bloomberg

EUR/USD still in a downtrend

Greece worries exploded onto the scene over the weekend, causing a continuation of the short-term downtrend that began last week at $1.1250.

This series of lower highs and lower lows will be preserved unless EUR/USD can move back above $1.1190. If the price fails to make a new higher high, we look to see if it can move below the $1.1110 level. A drop below $1.1080 would likely be the signal for a deeper retracement to $1.10 itself. 

GBP/USD – buyers back in charge?

Last week’s swift drop to $1.2775, the previous key support in late April, seems to have ended. Further gains this morning are pushing GBP/USD back above $1.2846, the high set during Monday’s thin trading.

It looks like the buyers are back in charge, a view that would only be cancelled out with a daily close below $1.28. 

USD/JPY holding at the support zone from ¥110.11 to ¥110.80

The ranging nature of USD/JPY action looks to be resolving in favour of the bears, with a clear series of lower highs since last Wednesday. However, so far the price is being held up by the support zone from ¥110.11 to ¥110.80.

A clear break below here is needed to resolve the impasse, and would open the way to ¥108. A break higher needs a close above ¥112, which would indicate that a new push in the direction of ¥114.37 is underway.

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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.