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

Dollar weakness continues to aid the euro and sterling, while USD/JPY seems set for further losses. 

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.
Pounds and dollar
Source: Bloomberg

EUR/USD with support at $1.1384

So far this week $1.1384 has acted as support for EUR/USD, preventing further downside, so this is the area the bears need to break, ideally with a close below $1.1366.

An upside move requires a break back above $1.1445, which would give it the strength to test $1.15. 

GBP/USD at risk of a drop to $1.2911

GBP/USD has broken the descending trendline off the highs from late June, but now we could see a retest of these levels and a drop back towards $1.2911, the 50-period simple moving average (SMA) on the four-hour chart.

Longer-term, the price needs to clear $1.3084, which has been a hurdle before, in May. A move below $1.2825 is needed to restart the downward trend. 

USD/JPY heading down

The bearish failure to break ¥114.37 earlier in the week continues to set the tone for USD/JPY.

Dips below ¥113 saw buyers, but the inability to move back above ¥113.50 suggests that the next move will be downwards, towards ¥112.75 and lower. 

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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.