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

The euro is still unable to move higher, while the pound is trying to hold its ground against the US dollar.

EUR/USD still under pressure

Last week saw the price for EUR/USD falter at $1.13, then drop sharply to $1.123.

While the pair has recovered slightly, a failure to continue the push higher from here would suggest a move to $1.118 and the crucial area of support around this level. A close above $1.133 is needed to provide a more bullish view.

GBP/USD decline slowing

GBP/USD is in a bullish wedge formation, with a shallow set of lower lows even as the lower highs remain in place.

A breakout above $1.305 is needed to provide a more bullish view, targeting $1.31 and then $1.32.

USD/JPY rebounds from lows

After falling back from ¥112.00 USD/JPY has held its ground, with dips towards ¥111.60 finding buyers.

A close above ¥112.00 would be a more positive development, but it still requires a close above ¥112.20 to firmly clear the area of resistance.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

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