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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.

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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.

EUR/USD price chart

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.

GBP/USD price chart

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.

USD/JPY price chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.