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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

EUR/USD and GBP/USD are regaining ground, but will it last? Meanwhile, USD/JPY is attempting to break into a more bullish phase.

USD/JPY figures
Source: Bloomberg

EUR/USD pushing higher from Fibonacci support

EUR/USD has been moving higher from Fibonacci support since bottoming out on Thursday. Given the wider uptrend, there is a good chance we could be looking at the beginning of the next leg higher for this pair.

We will need a break through $1.1300 to fully know whether that is the case, but unless we break below $1.1110, another move higher seems to be a more likely option. 

EU/USD chart

GBP/USD grinds higher within bearish wedge

GBP/USD has been moving higher over recent trade days. The wider downtrend remains relevant here, with this recent resurgence looking like a short-term retracement before we move lower once more.

With that in mind, rallies look like selling opportunities, with a break through $1.2978 required to negate this view.

GBP/USD chart

USD/JPY shows signs of resurgence

USD/JPY saw a strong end to the week just gone, with question marks being raised over the longevity of this recent downtrend. Interestingly, we saw the price break through $110.81 resistance, weakening at the $111.42 mark.

As such, with the price moving higher once more, a break through $111.42 would provide us with a bullish short-term view for the pair. Conversely, a failure to do so, followed by a break below $110.64 would look likely to bring a more bearing tilt to this market.

USD/JPY chart

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