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

The tides turn, as GBP/USD and EUR/USD gain ground at the expense of the dollar, while USD/JPY begins to move higher.

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 note and pound
Source: Bloomberg

EUR/USD bounces from crucial support level

EUR/USD managed to rally from the crucial $1.1202 support level yesterday, after a sharp move lower threatened to provide a more bearish signal. An hourly close below that level would provide a short term bearish signal.

Conversely, an hourly close above $1.1285 would signal that the uptrend looks set to continue, negating the fact that we are no longer creating higher lows.

GBP/USD punches higher once more on election day

A massive day for the UK, and in turn the pound is clearly showing its true colours, with continued gains for GBP/USD highlighting an expectation of further gains by this time tomorrow.

The short-term trend is clearly towards the upside, and we would need to see a break through $1.2872 to negate that trend. To the upside watch out for trendline resistance up ahead.

USD/JPY retracing after recent sell-off

USD/JPY is gaining ground following a sharp move lower earlier this week. As things stand, this looks like a short-term phenomenon, with a move into the deeper Fibonacci retracements of 61.8% (¥110.11) and 76.4% (¥110.35) providing interesting areas for shorts.

Essentially, we have the continued creation of lower highs and lower lows, which would be negated by a break through ¥110.73. Until that happens, a bearish outlook remains in play.

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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.