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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 and USD/JPY

The euro remains under pressure but sterling has managed to climb above a key level.

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EUR/USD sees upward momentum falter

The price of EUR/USD has rallied from the lows of last week, but has failed to push higher.

As a result, we may see bearish momentum develop without a close above $1.1450. Further declines target the $1.13 level of support, which held in August and October. Below this the $1.1118 area comes into play.

EUR/USD chart

GBP/USD solidifies hold above $1.3050

Cable has managed to move GBP/USD above the $1.3050 area that provided resistance at the end of last week.

Further gains would head towards possible resistance at $1.32 and then $1.33. A bearish view would prevail with a move back below $1.2950.

GBP/USD chart

USD/JPY challenges recent resistance

The 31 October high at ¥113.38 for USD/JPY is still acting as resistance, with an attempt to move above this level today defeated.

Above this, ¥113.64 and then ¥114.50 are potential targets. Due to ¥112.56 being defended by buyers last week, a move below this is required to put a more bearish view on the pair.

USD/JPY chart

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