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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 downtrends in EUR/USD and GBP/USD look to be reasserting themselves, while USD/JPY is on the up once more.

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EUR/USD appears to reaffirm downtrend

It may well be that EUR/USD’s downtrend from the April highs has reasserted itself.

The pair faltered last week at $1.17, so further declines below $1.15 will support the bearish thesis. This would open the way to support at $1.13. A close above $1.16 would signal that the buyers have regained control for the time being.

EUR/USD chart

GBP/USD creates new lower high

Declines continue here, with GBP/USD having created a new lower high at $1.30, faltering at the 50-day simple moving average (SMA).

Further losses will bring support at $1.27 and then $1.26 into view. A bounce from above $1.28 would create a new higher low in the current short-term move higher, bringing $1.30 into play once more. A daily close above this level would arguably create a more bullish outlook for the pair.

GBP/USD chart

USD/JPY moves above 50-day SMA

USD/JPY is advancing once again, with buyers stepping in around the ¥111.00 level over the past three sessions.

The move back above the 50-day SMA (¥111.19) adds to the bullish view. Further gains would target the area around ¥112.00 that has acted as resistance since the end of July, and then on to the ¥113.00 area. A close below ¥110.50 is needed to suggest further declines are at hand.

USD/JPY chart

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