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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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. 70% 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

We have seen sharp reversals in EUR/USD and GBP/USD, despite the lack of change from the Federal Reserve last night. 

Pound and dollar
Source: Bloomberg

EUR/USD eyes $1.10

The $1.13 level remains as solid resistance — a push to it yesterday was swiftly knocked back, and now we look to see if the area around $1.1172 can hold as support.

If broken, then $1.1109 comes into play. A drop through this level could see the pair then head back to $1.10, and potentially lower.

EUR/USD

GBP/USD eyes 50-day SMA

Like other currency pairs, cable reversed course yesterday, with this pair back below $1.28 once more. $1.2706 and then $1.2616 are now the levels to watch on the downside, with a break below the latter potentially opening the way to $1.2380.

We would need to see the price reclaim the 50-day simple moving average (SMA) at $1.2822 to become more bullish.

GBP/USD

USD/JPY could drop to April low

The Federal Reserve's uninspiring meeting last night failed to provide much of a boost for USD/JPY. So far though the pair is exhibiting a marked reluctance to move below ¥109.

If this can hold then the possibility of a bounce rises, with ¥110.35 and then ¥110.84 in play as upside targets. A drop below ¥109 raises the prospect of a move to the April low at ¥108.13.

USD/JPY

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