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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how 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

Dollar strength continues to be felt, weighing heavily on EUR/USD and GBP/USD.

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EUR/USD with bearish momentum

Further declines for EUR/USD will see the $1.17 and $1.1754 areas tested.

The loss of the 200-day simple moving average (SMA) of $1.2020 signals a further bearish shift, and any rebound that fails to move back above $1.2165 would likely represent a selling opportunity.

EUR/USD price chart

GBP/USD price continuing to drop

Looking at GBP/USD, there seems little to hold up sterling this week ahead of the Bank of England (BoE) meeting.

The price continues on its downward trajectory, and the loss of the 200-day SMA at $1.3544 would see the $1.3321 level come into play. A move back above $1.37 is needed to put a more bullish view on the pair.

GBP/USD price chart

USD/JPY could see a bounce to ¥110.00

The price for USD/JPY has fallen back to the rising trendline from the March lows.

If this holds then a bounce to ¥110.00 cannot be ruled out. A close below the trendline would target ¥108.13 and then ¥107.50.

USD/JPY price chart

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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