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

A mixed picture for the dollar sees potential weakness for the yen and the Aussie dollar against the greenback, while the euro looks set for a period of weakness.

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.
Dollar and pound
Source: Bloomberg

EUR/USD showing signs of reversing lower once more

EUR/USD managed to break higher yesterday, following the gains seen late on Wednesday. However, we are seeing the pair now break below the key $1.0647, which brings about the potential for a more protracted move lower to end the week.

Given that break, any move higher would be expected to fall short of the $1.0679 peak seen yesterday.

USD/JPY shows signs of further weakness

USD/JPY has sold off heavily over recent days, with yesterday’s low of ¥113.08 providing a key reference point for this morning.

A break and hourly close below that level would provide a more bearish outlook for the coming days. It is worth bearing in mind that the wider trend remains bearish given the recent inability to break through ¥115.38. 

AUD/USD weakness would provide bullish entry

The Australian dollar has been a strong performer of late, with a clear uptrend for AUD/USD. We have seen a repeated pullback to the 50% retracement overnight and, with the current break below that level, it looks like we could get a better entry price for longs.

Essentially as long as $0.7637 remains unbroken, another leg higher seems likely, with retracements providing opportunity. 

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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.