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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

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

While the euro struggles at resistance, buyers continue to push USD/JPY higher.

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EUR/USD struggles to clear $1.18

EUR/USD’s price rallied to $1.18 yesterday, but then dropped back.

A close above this level continues to elude the pair, but it remains in an uptrend from the August lows. The near-term bullish view persists unless we see a close below rising trendline support, around $1.1660.

EUR/USD chart

GBP/USD remains in an uptrend

GBP/USD recovered from Friday’s slump, creating a higher low as it held above $1.3040 support.

Further gains target $1.3204 and then $1.33. A drop below $1.3040 would suggest a move back towards rising support, around $1.2990. An ongoing failure to break $1.33 raises the prospect of a continuation of the downtrend seen since April.

GBP/USD chart

USD/JPY surge continues unabated

Since the beginning of the month the intraday dips in USD/JPY have been steadily bought, so we would need to see a move below ¥112.40 to break this run of higher lows.

From here a deeper retracement towards the post-March rising trendline, down towards ¥111.30, could see fresh buying pressure emerge. The current target remains the ¥113.39 high from late July.

USD/JPY chart

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