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CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing 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

EURUSD 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

GBPUSD 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 USDJPY 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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