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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

The euro remains under pressure, but USD/JPY is flying after breaching key downtrend line.

EUR/USD notes
Source: Bloomberg

EUR/USD support holds at $1.096 for now

EUR/USD fell sharply yesterday, dropping back from the $1.10 line which was a combination of horizontal and trendline resistance.

Support for now is holding at $1.0906, but a break below here would open the way to $1.0830 and lower. Those on a longer term view would wait for a drop towards $1.07 to hit the rising trendline from the December lows.

 

USD/JPY pushes higher

USD/JPY bulls have seized control here, sending the price flying through the downtrend line and above the 100-day simple moving average (SMA) at ¥113.13 for the first time since mid-March.

The next target on the daily chart looks to be ¥115.50, the high from early March. A move above here would create a new higher high. With the price being overbought intraday, it may be wise to wait for a retracement that tests the previous downtrend line, given that the price is now some 70 points higher. 

AUD/USD losing ground

The commodity crunch has made itself felt in AUD/USD, which has been steadily losing ground since mid-March.

A drop through support at $0.7364 means that we are looking at a test of $0.7310 if the downtrend continues. Short term, a bounce back above $0.74 and then $0.7420 would be needed to suggest that a turnaround is in the offing.

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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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