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

USD/JPY continues to be the poster boy for volatility in FX markets, although for now the plunge appears to have stalled.

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 currency cross
Source: Bloomberg

GBP/USD in the hands of the bears
A move off the lows of $1.4350 seems to be petering out, which could afford shorts the opportunity to add to positions. Further downward momentum below $1.4350 would take the pair on to the 2 February low of $1.4320, and then on to $1.4230 and then $1.4150. It would take a move back through $1.45 to cancel out the bearish outlook.

EUR/USD remains rangebound
The pair continues to oscillate in a range bounded by $1.1132 and $1.1250, providing clear levels for any breakout. A continued failure to push higher would suggest the pair is setting up for a test of the $1.11 area, with a break below here taking us towards $1.10 and the rising hourly trendline. 

USD/JPY looks to stop the rot
Having hit its lowest level since late 2014, USD/JPY is doing its best to move off the lows. A bounce would push the pair back to the ¥116.40 area, which would coincide nicely with both the previous support level from 5 February, and the descending trendline on the hourly chart. A turn lower from here would target ¥114.72 and then on to sub-¥114.

Now or never for USD/CAD
The rally in this pair faces a ‘do or die’ moment, having failed to push on beyond C$1.40 so far in the past 24 hours. If it does, then we look towards the C$1.41 peak from 3 February, with a failure to move higher suggesting that support levels around C$1.3850 and then C$1.31720 will be tested.

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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.