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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

Dollar strength continues to push down EUR/USD and GBP/USD, although short-term rebounds seem likely.

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EUR/USD could see another selling opportunity

The sellers took control of EUR/USD earlier in the week when the price failed to break $1.2350 to the upside. Now we have seen it push back towards $1.2165, dropping below the $1.22 level.

If $1.2165 goes then we will see a test of $1.21 and the rising trendline from the November lows. A bounce will target $1.23 and then on to $1.25. Any failure to breach $1.2350 would likely constitute another selling opportunity.

GBP/USD sees opportunity for going short

Dollar strength has seen GBP/USD create a series of lower highs since the late January peak, with the rally to $1.4070 earlier in the week meeting heavy selling.

A rebound would carry the price back towards the $1.40 level and the downtrend line running from the January highs. This would provide another opportunity for short positions, so a breach above $1.4070 is needed to create a new higher high.

USD/CAD has potential for buyers

USD/CAD has traded in a strong rising trend throughout the month, with buyers entering to buy the dip earlier in the week.

The next high is C$1.2920, last seen in December. Any pullback that holds above C$1.26 would constitute a buying opportunity.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

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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