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

The euro and sterling remain firmly under pressure, while USD/JPY is enjoying a strong rally.

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EUR/USD in key support area

EUR/USD has dropped below the rising trendline that has held in place since last April. It is now into the key support area that has held around $1.22 since the beginning of February.

Below this, $1.1950 would be a possible area of support. A turn higher continues to target $1.24 and $1.2520.

GBP/USD holding despite drop

While the price for GBP/USD is dropping below $1.40, it does continue to hold the 50-day simple moving average (SMA) of $1.3989.

However, a fresh bounce from here would target $1.42 and then $1.4345. Further losses will test support at $1.3836, $1.3711 and then $1.3659.

USD/JPY in a strong rally

USD/JPY has enjoyed a strong rally, breaking above ¥107.30 for the first time since early March.

From here, ¥108.00 comes into view. A failure to hold above ¥107.32 would trigger a broader fall back towards ¥105.00.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

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