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.

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

Both sterling and the euro have moved off the lows from Thursday’s session, while the Aussie has encountered key resistance.

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.
Yen and US dollar notes
Source: Bloomberg

GBP/USD stays off weekly-lows

The pair was knocked back yesterday by news the prime minister will give a speech on her Brexit policy next Tuesday.

However, it found some support around $1.2150, crucially holding above the lows of the week at $1.2046. A further rally could target $1.2270 and then $1.2378. 

EUR/USD dip may offer chance to buy

After finishing off the highs yesterday the pair is steadily recovering, with the first target being at $1.0677, and then above here it could target $1.0737 and then $1.0790.

With the rally from the December lows intact, the latest dip may well be a buying opportunity, with a move below $1.05 needed to negate the current bullish outlook.

USD/JPY gains restricted by ¥115.15

USD/JPY hit support at ¥113.88 yesterday, and then rallied, but so far the ¥115.15 level is constraining any further gains.

A move above this could signal the pullback is over. However, this will only be confirmed with a daily close back above ¥116.

Below ¥115.15 the price may target ¥113.34 and then ¥111.16. 

AUD/USD looks to continue rally

The impressive rally here has carried the price all the way back to $0.75, last seen in mid-December.

Now it must post a close above this level to open the way to $0.7572. A failure to push higher today, and then a close below $0.7464, would suggest that the rally has come to an end. 

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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.

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