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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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

A key day for FX sees USD/JPY under some pressure. With key speeches today from big-name central bankers, the potential for volatility is increasing. 

Euro notes
Source: Bloomberg

EUR/USD – bullish view  remains in play?

The pair’s move higher off the lows of last week remains intact, although it has yet to breach the $1.12 area in a meaningful way.

Above this would be $1.1270 and then $1.13. It would take a move below the $1.1139 and then $1.1109 area to begin to unwind the bullish outlook for EUR/USD

GBP/USD – another test of $1.2616 on the way?

The downtrend continues for GBP/USD, with a bounce from last week’s lows around $1.26 fizzling out around $1.2750. A push back below the weekly pivot at $1.2706 would signal that another test of $1.2616 is on its way.

As before, $1.2814 is the area that needs to be cleared before we can expect more sustained upside in this pair.

USD/JPY momentum indicators where reversals have begun

USD/JPY has run into the 100-day simple moving average (SMA) at ¥111.80, with momentum indicators, such as stochastics, now in the area where reversals have begun (see mid-March and mid-May).

A close back below ¥111.68 could well see a fresh downward move begin, targeting ¥110.11 and lower. A daily close above the 100-day SMA would be a bullish development, and potentially open the way back to ¥114. 

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