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FX levels to watch – GBP/USD, EUR/USD, AUD/USD. USD/CAD

Fed minutes have put markets on notice for a June move, so the losses in EUR/USD look set to continue, while the USD/CAD rally has entered a new phase.

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.
GBP/EUR forex pair
Source: Bloomberg

GBP/USD surges on Brexit news
Yesterday’s Brexit poll, which gave a healthy lead to the ‘Remain’ campaign, was the cue for another surge in cable, with only a modest pullback seen thus far this morning. Three days of gains have turned the pair bullish, so dips should see buying as and when they appear.

The next target is $1.4668, the high from the beginning of the month, while beyond this the 200-day simple moving average (SMA) at $1.4804 still looms.

EUR/USD seems to have stablised
After heavy losses yesterday the pair has stabilised just above $1.12, but having opened below key support (now resistance) at $1.1223, it looks like further downside is on the way. We may see the pair head towards $1.1149, the 100-day SMA, or to the 200-day SMA at $1.11.

Any rally back towards $1.13 would start to look like a possible selling opportunity. It will need sustained price action back above $1.13 to turn the pair bullish.

AUD/USD primed to bounce
Rallies continue to be sold, as we saw on Tuesday, but with the pair oversold intraday a bounce back towards $0.73 could be the likely move. The low from the end of February, $0.71, is the next area to watch. 

USD/CAD in the bull’s hands
FOMC hawkishness has put more life into this rally, with the push above C$1.30 providing fresh bullish sentiment. The next target would be C$1.32, the high from early April, with the 200-day SMA at C$1.3357 the next stopping point. 

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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.