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

All attention is focused on the yen, which continues to fly versus the US dollar. Meanwhile, sterling remains weak, as the overnight bounce fizzles out. 

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.
Pound and dollar
Source: Bloomberg

GBP/USD

A dip through $1.4050 was swiftly bought yesterday, but the pair needs to push on back above $1.42 to suggest that the downtrend has run its course.

A failure to move on above $1.4170, which was resistance over the past two days, could signal that more downside is on its way, in the direction of $1.40 and lower. If $1.42 is breached then the next target becomes $1.4325, the high from 4 April.

EUR/USD

After days of testing the $1.14 area, the pair finally broke higher yesterday and has pushed on again this morning. Dips back towards $1.14 should bring out fresh buyers.

The next target to the upside becomes $1.15, above the peak from mid-October 2015. 

AUD/USD

Although the Aussie has rallied along with other risk assets, it has faltered just above $0.76. A move lower from here would push the pair back towards the low from Tuesday, just above $0.75, and then on down towards $0.7474.

If the pair holds above $0.76 then we look towards the peak from the beginning of the month, at $0.77, as the next target, and then the pair needs to make a new high to restore the upward trend.

USD/JPY

The pair has declined rapidly in recent days but for now support at the third weekly pivot at ¥108.70 is holding. If this breaks then the next real support on the daily chart is the October 2014 low at ¥105.20.

It would not be surprising to see a bounce materialise, but the inside trendline that was broken overnight at ¥109.30 will now provide resistance. Even if the price does rally above here the downward trendline off the late March highs will come into play around ¥110.

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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.