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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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. 71% 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 and sterling continue to lose ground versus the dollar, but USD/JPY is mounting a strong defence of its rising trendline.

Euro
Source: Bloomberg

EUR/USD tests $1.14

The losses continue for EUR/USD, and a small overnight move higher was met with selling as the price pushes below the support zone around $1.14. From here the $1.13 low from mid-August comes into play.

The pair has been in a downtrend from late September, with the mid-October rally creating a lower high. Any bounce that fails to break $1.15 is another selling opportunity.

GBP/USD turns lower again

A steady downtrend continues for GBP/USD, and with the price now below the early October low of $1.292, further losses seem likely. Potentional support sits at $1.2773 and $1.2635.

Any rally intraday that holds below $1.30 would be another selling opportunity, while a close above $1.305 is needed to suggest the buyers are back in charge.

USD/JPY holds rising trend

While USD/JPY has had a tough couple of days, the pair continues to hold the March rising trendline.

Further gains will target ¥113.00 and then ¥113.64 and ¥114.50. The bullish view persists unless we see a close below ¥111.62, the low from last week.

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