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

Dollar strength is once more the main driver of FX markets, with EUR/USD and AUD/USD selling-off as USD/JPY continues its ascent.

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.
Euro and US dollar notes
Source: Bloomberg

EUR/USD continues incredible sell-off

EUR/USD is once more breaking lower, following a sharp move overnight. The current sideways price action is expected to result in another move lower.

However, as long as we do not see an hourly close back above $1.0745 a bearish view remains. The next notable support level in view is $1.0525.

USD/JPY charges higher once more

IN_USDJPY has spiked higher overnight, in a continuation of the recent bullish trend. It is worth noting that on the whole, the four-hour chart has been relatively good for picking out the key swing highs and lows.

Given the recent trend, we expect to see further gains, with a break below the ¥108.55 required to negate this uptrend. To the upside, the ¥111.44 level (May 2016 high) represents a major level of resistance to watch out for.

AUD/USD continues to trend lower

AUD/USD has continued to extend its losses following a break lower from a symmetrical triangle pattern last week. This has formed a very consistent downtrend. As such, further losses seem likely.

However, it makes more sense to sell into rallies, given the threat of a rebound considering the shallow nature of current losses. A bearish outlook is in place unless we see a break through $0.7502.

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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.