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

The dollar is back in charge, with the Fed expected to raise rates again later today. With EUR/USD and GBP/USD turning lower, and USD/JPY pushing higher, it seems there is likely to be further USD upside yet.

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 falls towards key support level

The pair has been drifting lower in the first half of the week, with EUR/USD moving into a support level that is pivotal for the short-term outlook.

That $1.1727 support level is going to be the key level to watch today, for a break below there would complete a lower low and accompany the lower high set yesterday. As such, an hourly close below $1.1727 would provide a bearish short-term outlook to coincide with the wider bearish outlook. Otherwise, a rally above $1.1837 would signal a likely continuation of the recent rebound.

GBP/USD reversing recent gains

GBP/USD is continuing its decline this morning, with the pair reversing the rebound we saw last week.

With the price approaching trendline support, there is a chance of another short-term bounce into trendline resistance. However, until we break above $1.3425, a bearish short-term picture is in play.

USD/JPY continues to extend breakout

USD/JPY has been steadily climbing after the break through the crucial ¥110.27 swing high.

That break signifies a likely resurgence of that pair and negates the breakdown below ¥108.64 in late May. With that in mind, further upside looks likely, with a fall below ¥110.10 required to bring about a bearish short-term outlook. At which point we would be looking at a likely retracement of the rally up from ¥109.19.

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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.