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

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

The Fed’s hike has not boosted the dollar, and even the apparent desire for two more hikes this year has failed to lift the greenback. 

GBP/USD
Source: Bloomberg

EUR/USD recovers from Fed hike

Despite the Federal Reserve’s (Fed’s) turn towards a more hawkish policy last night, EUR/USD has managed to rise, moving back above $1.18 and holding the rising trendline from the May lows.

A move above last week’s high at $1.1840 would open the way to $1.1915 and $1.1996. A move below $1.1770 risks the loss of the rising trendline, targeting support at $1.1717.

EUR/USD chart

GBP/USD bounce finds its legs

GBP/USD rallied off the lows yesterday, bouncing from $1.33.

The next target is $1.3472, the highs from last week, and then $1.3550. Buyers defended the area around $1.3320 yesterday, so a close below that is needed to open the way to $1.32, the May low.

GBP/USD chart

USD/JPY continues to weaken

USD/JPY has created a lower high after faltering at ¥110.84.

This potentially raises the prospect of a move back to the rising trendline from the March low, suggesting support around ¥109.00. A turn higher targets ¥110.84, and then the May high at ¥111.39

USD/JPY chart

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