CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

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.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

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.

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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.