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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

A weakening dollar has led to a bounce in EUR/USD and GBP/USD, and has put a dent in USD/JPY’s rally.

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EUR/USD clambers above $1.17

EURUSD has recovered from the lows of last week, and is attempting to move further above $1.17.

A close above $1.1744 would be viewed as more bullish, targeting $1.18 and then $1.1852. A further decline today would see the $1.15 support zone tested once again.

GBP/USD bounces from recent lows

Sterling bulls wrenched back control on Friday, but GBPUSD still recorded a new lower low last week.

A close above $1.3306 is needed to indicate that the post-May downtrend has run its course. A lower high in the next few days would continue to be regarded as a selling opportunity, targeting $1.30 and lower.

USD/JPY drops back to support

USDJPY has retraced towards rising trendline support from the March lows.

A bounce from here would target the ¥113.00 level, but it is disappointing to see the price back below the post-2015 downtrend line. A bounce back above ¥111.60 would negate this bearish view. Further declines are likely to find support around ¥110.00.

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