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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

The euro and sterling are higher this morning, while the dollar continues to hold its own against the yen.

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EUR/USD bounce gathers pace

EUR/USD has rallied strongly from the low at the end of last week, and looks likely to challenge downward sloping resistance from the 14 May high.

A break above this line requires a move above $1.1755, and then a close above $1.18 to create a higher high above that from the beginning of last week.

GBP/USD higher ahead of CPI

GBP/USD remains stuck in a downtrend from the May high, with a push towards trendline resistance yesterday being defeated.

However, a move above $1.33 would break resistance, and then the $1.3350 area comes into play. A turn lower targets $1.31 and then $1.3040.

USD/JPY holds ground after breakout

The price for USD/JPY has dropped back slightly after breaking out last week, but the uptrend is still in place.

A near-term bounce will challenge the high at ¥112.80, while a further decline would likely see buyers emerge around ¥110.00.

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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.

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