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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and 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 has revived, as USD/JPY breaks a three-year downtrend.

JPY
Source: Bloomberg

EUR/USD back under pressure

The broader declining trend looks to have reasserted itself over the past two days, as EUR/USD continues to drop back from the high near $1.18 earlier in the week.

Further declines will bring the $1.15 support zone into play again, while a move back above $1.18 would suggest a retest of the June high at $1.1852.

EUR/USD price chart

GBP/USD turns lower

GBP/USD has clocked up a new lower high this week, continuing the declining trend seen since mid-May.

Further falls will take the price below $1.3204 and suggest another move towards possible support around $1.3040. A daily close above $1.3364 is needed to break the short-term downtrend from the May highs and establish a new higher high.

GBP/USD price chart

USD/JPY surges

The USD/JPY price has broken out from a downtrend line that has been extant since the first half of 2015.

Pullbacks towards ¥110.84 may continue to find buyers, while new upside targets are to be found around ¥113.64 and then ¥114.50.

USD/JPY price chart

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