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FX levels to watch – EUR/USD, GBP/USD, USD/JPY

Dollar strength has abated slightly, but overall the greenback’s rally continues to hit key currency pairs.

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 returns to key support

EUR/USD is now testing the crucial support zone around $1.22 that has held since the middle of January.

Below $1.2165, the $1.2092 level comes into play. A rally will target the $1.24 area, and a push above here would break the sequence of lower highs seen on the four-hour chart since mid-February.

GBP/USD still hit by Carney’s dovishness

There has been little stopping GBP/USD on its downward move over the past week, but with UK data drying up we may see a slowdown in the rate of descent.

It has fallen below the low from 5-6 April, around $1.40, but with momentum so heavily oversold on the four-hour chart a rebound is possible. Above $1.3943, the pair targets $1.4070 and $1.4145 in the near term. Further declines will target $1.3836.

USD/JPY flies higher

USD/JPY has enjoyed its first sustained rally in weeks, reaching the 100-day simple moving average (SMA) for the first time since the middle of January.

The next upside target comes in at ¥110.50. The price has become overextended in the short term, which could result in a retracement towards ¥107.50. 

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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.