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

A bit of a mixed bag for the dollar sees it strengthen against the yen and sterling, while the euro continues to gain ground following yesterday’s ECB meeting. 

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
Source: Bloomberg

EUR/USD heading towards key resistance level

EUR/USD has been gaining ground following yesterday’s bounce from $1.0525, with the price now heading towards the absolutely crucial $1.0629-$1.0640 resistance zone.

The ability to break through that resistance area is key to understanding whether we are seeing a bottom, or just consolidation before further losses ensue. In the shorter-term, a break through yesterday’s high of $1.0615 is required to carry the short-term uptrend through.

GBP/USD continues to fall

GBP/USD has seen its downtrend continue this week, with the price falling into the 76.4% retracement. The second half of the week has been characterised by consolidation, with another leg lower certainly a strong possibility, given the shorter term trend.

That said, with the price having rallied through the 50-hour simple moving average (SMA), a break above the 100-day SMA and the swing high of $1.2214 would be an important sign that we could be moving into some strength for the pair. 

USD/JPY rally points to bullish reversal

USD/JPY has punched through the crucial ¥114.96 resistance level overnight, completing a bullish reversal pattern for the pair. This has implications for the medium-term fortunes of the pair, with continued strength likely to ensue.

A break below ¥113.56 would be required to negate this view. Until then, buying on dips makes sense.

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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.