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

The Fed meeting has put pressure on the dollar, but moves in the euro and sterling remain muted ahead of the big central bank news later today.

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.

EUR/USD recovers from the lows

EUR/USD tested $1.1713 earlier in the week, but a rebound following the Federal Reserve (Fed) decision took it back above $1.1808.

Now we wait to see if it can push on and move through the trio of resistance levels at $1.1836, $1.1858 and then $1.1879. A turn lower raises the prospect of another test of $1.1713.

GBP/USD aims for another move higher

Dollar weakness has given GBP/USD a boost as well, rallying from the lows of the week.

The next upside targets would be at $1.3517, then $1.3549. A more bearish view would require a move below $1.3268.

USD/JPY turns lower

USD/JPY has dropped back from the highs of the week, creating a lower high.

However, the pair has managed to hold above the downtrend line from the November high, finding support at ¥112.50 along with the retest of the downward sloping resistance. A bounce may target ¥113.09 and then ¥113.33, while a drop below ¥112.50 opens the way to ¥112.00 and then ¥111.68.

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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.