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

The euro is trying to rally, while USD/JPY is poised above key support.

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 dollar notes
Source: Bloomberg

EUR/USD taking small steps up

A small bounce for EUR/USD yesterday is a possible sign that the bulls are gathering strength, but we still need to see a push back above $1.0689 to confirm that a really bullish move is underway on the hourly chart.

Any failure below this simply constitutes a new lower high. However, it would be a good sign if the pair moved back above $1.06 on the daily chart, signaling that the rally off the December lows is still intact. A close below yesterday’s lows of $1.0569 would signal a possible drop to the February low around $1.0494.

GBP/USD losing momentum

GBP/USD recovered the $1.2376 level yesterday, reversing some of Friday’s losses. However, momentum appears to be waning, and still needs a push above $1.25 to reverse the negative short-term trend.

A drop below $1.2376 would suggest that bears have the upper hand once again and could suggest a drop back to the rising trendline off the October low, which would indicate a target around $1.22.

USD/JPY tested

Once again USD/JPY finds itself testing the rising trendline off the November low. It held this last week, but a close below it would be a bearish signal.

A further decline below ¥110.11, the key low of March, would suggest that a move to ¥107.45 and then ¥105.53 is in the offing. Bulls need to break ¥111.58 to create a new higher high and thus provide the potential for a move higher in the longer term.

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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.

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