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

Increased optimism has seen the euro and sterling rally, while USD/JPY is also on the up.

EUR/USD surges in early trade

Renewed euro strength early on this morning suggests we may see another attempt by EUR/USD to break the $1.1660 area that stifled upward progress last week.

If this is broken then the August high at $1.1740 comes into view. The cautiously bullish view would be negated by a move back below $1.15.

GBP/USD pushed higher by Brexit optimism

GBP/USD has finally managed to break above the downtrend line from the May highs.

If the price succeeds in closing above $1.3040 then the breakout will target the $1.3205 area. A move back below $1.30 reignites the bearish move and suggests a move back to $1.2773.

USD/JPY rallies sharply

More dollar strength is in evidence for USD/JPY, but a close above ¥112.00 is still needed to suggest a real breakout has occurred.

This would then target ¥113.00 and higher. A bearish view requires a move back below ¥110.40.

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