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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how 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/CAD

The dollar takes a hit, with EUR/USD and GBP/USD rallying sharply. Meanwhile, USD/CAD is worth watching for a potential rebound in the coming weeks.

Euro
Source: Bloomberg

EUR/USD bounces through Fibonacci level

EUR/USD has managed to gain a significant amount of ground this week, with the pair rallying through a number of short-term resistance levels. We have seen the pair pass through the 76.4% retracement, only to seemingly find it as new support overnight.

A break through $1.0655 would have significant wider considerations, bringing the potential for a longer lasting push higher for the pair. Considering that this rally is coming from an attempted breakout below $1.0462 on the longer term charts, the bearish short-term view is somewhat negated. Despite this 76.4% retracement looking like a potential short, there is a clear story building on a potential longer term recovery for the pair. As such, it is worth waiting to see if we can break above $1.0655 to dictate the state of play.

GBP/USD breaks key resistance level

GBP/USD managed to push through the crucial $1.2388 mark yesterday, in what was an incredible run for the pair. This brings about a more bullish scenario, with the current pullback looking like a short-term phenomenon before we move higher once more.

The long-term outlook is still bearish, yet on the medium term, it looks like we could see a break back into the $1.2500 region. As such, watch out for potential Fibonacci support around $1.2309, $1.2333 and $1.2352.

USD/CAD looking for medium term recovery

USD/CAD has sold off sharply over the past fortnight, with price falling back towards the bottom of its eight-month channel. This isn’t to say that the sell-off is over, as the short-term has not shown this, yet it is likely that we will see the pair start to form those bottoming patterns soon.

Yesterday saw the market fall into the 76.4% level, which provided a strong bullish buying opportunity. Should price fall back into the 70% (C$1.3236) or 76.4% (C$1.3203) region once more, then this would provide an opportunity to get into this long-term trend at an advantageous price. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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