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

Brexit headlines are rocking GBP pairs this morning, while the euro is back under pressure.

Source: Bloomberg

EUR/USD still stuck in downtrend

EUR/USD has rallied off the lows but remains in a broader downtrend from the highs of September.

A failure to push on above $1.135 would signal that we have more declines ahead, while a rally above this level would head towards $1.1554.

GBP/USD rocked by Brexit headlines

The rally of GBP/USD earlier in the week has faltered, and the price finds itself back below $1.305.

Further declines will head towards $1.28, the lows from earlier in the week, while a rally above $1.305 would open the way to $1.32. With headlines appearing throughout the day, the pair is likely to be particularly volatile.

USD/JPY falters again

USD/JPY continues to weaken, and we look for further declines towards the 50-day simple moving average (SMA) at ¥112.76.

Rallies have been sold into over the past few days, but a rebound above ¥113.64 would be bullish in the near term.

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