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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 and USD/JPY

A potential breakthrough in Brexit talks has bolstered sterling, while USD/JPY has steadied after a drop overnight.

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EUR/USD downtrend intact

Short-term support for EUR/USD has been found around $1.13, coinciding with a decent bounce from intraday oversold conditions.

However, for the moment this merely looks like a lower high within the current downtrend. A turn lower from below $1.1146 would mark another potential selling opportunity, and would see the $1.13 area tested again. A bounce above $1.14 would open the way to $1.145 and then $1.155.

EUR/USD chart

GBP/USD surges on Brexit news

News of a deal between the EU and the UK over financial services has bolstered GBP/USD, with the pair recovering ground lost over the past week.

We may have a change of short-term trend here, although it will be important to watch how the price behaves around intraday pullbacks. Further upside would target $1.2926 and then $1.303.

GBP/USD chart

USD/JPY recovers from mid-week sell-off

We saw some weakness for USD/JPY yesterday but the overall push higher remains intact.

The pullback from ¥113.40 may see further buyers enter, continuing the sequence of higher lows. A move back below ¥112.50 would put a more bearish view on things, potentially targeting ¥111.50.

USD/JPY chart

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