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FX levels to watch: GBP/USD, EUR/USD, AUD/USD, USD/JPY

Dollar weakness appears to be abating, which is putting a dent in cable’s remarkable rally. 

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 forex
Source: Bloomberg

GBP/USD runs into resistance
Cable’s remarkable rally has run right into the previous support line from mid-2015, which is now acting as resistance. The failure to push on beyond $1.46 suggests a topping pattern is in place and that we can now expect more downside here.

Support comes in around $1.4450 and then $1.4377. It would take a move above $1.46 to reignite the rally, which would then push towards the 50-day SMA at $1.47. 

EUR/USD gains on hold
Two strong days of gains in EUR/USD have given way to a pause today. If the price fails to push on through $1.1250 then we may see a continued retracement back towards $1.10 with some support possible around $1.11.

The extent of the rally would indicate a pullback is needed, given how overbought the pair is on intraday charts.

AUD/USD lows offer chance to buy
The rising trend off the January lows still holds here, so any dips towards $0.7116 could still be bought. However, sustained price action below here in the coming week is likely to see a new leg lower develop.

In that case, we look to support around $0.7070 and then $0.70 itself. Below here the move would head towards $0.6911 and then $0.6827.

USD/JPY looks primed to sell
With the price below ¥117, it may be the case that we will see more downside. Any bounce back to the 50-hour simple moving average at ¥117.68 would likely be the signal for more selling, with further downside targets around ¥116.8 and then ¥115.51.

Any rally back above ¥117.80 would target ¥118.90 and then ¥120.

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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.