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.

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

The dollar has been regaining ground against the European currencies, while the yen proves one of the few currencies strong enough to gain ground against the greenback.

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 heading back into key resistance zone

Following a strong move lower last week, EUR/USD has managed to regain some composure.

That break below $1.2205 completed a wider double top formation, with further downside looking likely. However, with the price approaching the $1.2455 swing high, there is a chance we could see a 61.8-76.4% retracement ($1.2402-$1.2461). With trendline support and the $1.2455 level, the ability to break and hold above that resistance zone will be key to determining whether we will see further upside over the near term or not.

GBP/USD regaining ground after sell-off

GBP/USD fell below the key $1.3764 swing low last week, bringing a wider bearish view.

While this points towards further downside, there is a good chance we are seeing a retracement before the pair moves lower again. Keep an eye out for a break below the latest intraday swing low as a bearish signal, with $1.3756 the current level to watch. Until that is broken, further short-term gains seem likely.

USD/JPY consolidating after support break

USD/JPY broke below ¥105.53 support on Friday, with the price hitting a 15-month low.

This points towards further downside, yet with the price consolidating, it makes sense to await an hourly close below ¥105.24 to signal further downside. Alternately, an hourly close above ¥105.75 would point towards a more protracted retracement to the upside.

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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.