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

Dollar strength is back on the cards, with USD/JPY and USD/CAD turning higher, as EUR/USD shows signs of potential 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.
US dollar and Japanese yen notes
Source: Bloomberg

EUR/USD strength could prove short-lived

EUR/USD managed to break above the $1.0658 resistance level yesterday, providing a potential bullish move. However, with the swift break back below the $1.0583 mark, the pair takes on a bearish outlook once more.

Given the wider trend in play, further losses are preferred, with a break above $1.0686 required to negate this bearish view. 

USD/JPY turns higher once more

USD/JPY is strengthening, following a pullback to the crucial ¥111.45 support level yesterday. The pair has been on a remarkably consistent uptrend of late and we could see that trend come back into play once more.

Watch out for a potential break and hourly close above ¥112.80 as a bullish signal. Given the inability to hold below ¥111.45, a recovery from here does seem likely. As such, we are watching the reaction to ¥112.80 as a signal of the next move.

USD/CAD triangle remains in play

USD/CAD has bounced from the C$1.3398 descending triangle bottom once more this week, with price moving upwards into the C$1.3455 resistance level.

A break and hourly close above that level would point towards a move back into trendline resistance (currently C$1.3517). As such, watch out for the reaction to C$1.3455 as a key gauge of the next move.

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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.