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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/JPY

Dollar strength has put pressure on the euro and sterling, which are both seeing pullbacks for the time being.

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EUR/USD back below important resistance

The price continues to drop back for EUR/USD, having fallen below the key resistance zone around $1.185. The next areas to watch are $1.17, then $1.1662, and then $1.155.

A close below $1.1712 is needed to put an end to the rally from the November lows. A recovery above $1.1808 would be a good first step for the bulls, but there is still plenty of resistance that would need to be broken, at $1.1836, $1.1858, and then $1.188. 

GBP/USD drops towards trendline

The recent pullback here remains within the wider uptrend for GBP/USD.

It would take a move below $1.33 to break the rising trendline from the November lows, but even then, a close below $1.3221 would be needed to create a lower low. 

USD/JPY comes roaring back

We have seen a steady recovery over the past 24 hours for USD/JPY.

As a result, the price looks set to challenge the downtrend line from the November highs, which would suggest a test of resistance around ¥112.85. Above this ¥113.09, ¥113.33 and then ¥113.91 come into play. 

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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