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

Cable was unperturbed by CPI yesterday, so investors wait to see what impact employment figures will have. 

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.
Dollar and pound
Source: Bloomberg

EUR/USD turns lower again

A further day of losses yesterday saw EUR/USD bounce from $1.1740, but then turn lower once more. Any rally needs to take out the $1.1780 high from Tuesday, which would allow the pair to contemplate a move to the $1.1820 high from Monday’s session.

A drop through yesterday’s low would bring the $1.1662 level back into play as potential support.

GBP/USD holds above previous lows

Consumer Price Index (CPI) data yesterday failed to provide much inspiration for GBP/USD, so we wait to see if employment data can provide any greater catalyst. The price is holding above yesterday’s lows of around $1.3150, but any rally over the longer-term needs to break above the $1.3350 highs from last week.

Otherwise, a drop towards the $1.30 level and the post-March rising trendline is a distinct possibility.

USD/JPY gains strength from bounce

The bounce off ¥111.68 on Monday has given USD/JPY the strength to rally further. The highs of ¥113.00 and then the ¥113.50 from earlier in the month are now in sight.

A daily close below ¥111.50 would be needed to reverse the bullish outlook. For now, it seems that intraday dips will continue to find buyers.

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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.