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

There is dollar weakens across the board, with EUR/USD, GBP/USD and USD/JPY all seeing sharp devaluations of the greenback. Remember: the trend is your friend.

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 forex pair
Source: Bloomberg

EUR/USD breaks to new eight-month high
EUR/USD is breaking higher once more, following on from Friday’s push through the crucial October 2015 high of $1.1495. This trend is showing little sign of letting up and thus longs are preferred on any pullback.

The next major resistance level is an inside trendline (currently $1.1611), originating from the March 2015 low. Meanwhile, near-term support is located at $1.1522 and $1.1495.

GBP/USD rally continues its bullish trend
GBP/USD continues to gain, as the pair resumes the strong uptrend in place over the past month. With recent upside having broken through a number of importance resistance points, there are few key levels to watch out for. As such, any notable retracements are likely to be bought.

Near-term, that means any move down to the 61.8% ($1.4691) or 76.4% ($1.4679) would be ideal for new longs. Whether that pullback occurs or not remains to be seen.

However, the bullish view remains unless we see a break through the near-term support at $1.4660.

USD/JPY continues to tumble
Dollar weakness completed a hat-trick, with USD/JPY continuing to fall sharply since last week’s BoJ inaction. In a similar manner to EUR/USD and GBP/USD, any pullback will be seen as an opportunity to get into the trend.

Key near-term resistance levels are at 106.13 and 106.82, with support at 105.22 (200-week simple moving average).

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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.