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

It looks like we are in for a week focused on the dollar, as the market suddenly wakes up to the impact of Fed speeches. 

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.
Euro and dollar notes
Source: Bloomberg

GBP/USD could see downward move

The dollar currently carries all before it, so we could expect to see further weakness in the pair.

The 50-hour simple moving average ($1.3301) has so far prevented rallies over the past two days from gaining momentum. So while it is rallying now, a drop through Friday’s low at $1.3250 could see a swift move down towards $1.3050, since there is little support available at present between these two levels. 

EUR/USD tries to regain lost ground

Friday’s sell-off caught the euro too, but since hitting $1.12, the pair has climbed doggedly higher. A failure to push on from here could indicate a new lower high off the pre-European Central Bank peak, so the pair needs to push on through $1.1280 and then close above $1.13. A dip could see support at $1.12, Friday’s low, but a close below here opens the way to the 5/6 September lows around $1.1140. 

 

USD/JPY puts bears in charge

Despite the bounce on Thursday and Friday, the pair has remained below the downtrend line for the year. A further decline today through Friday’s support of ¥102 would indicate the sellers are still in charge, with ¥100 being the next big target.

A bounce through Friday’s high at ¥103 would suggest gains in the direction of ¥104, and indicate the ongoing decline here has run its course. 

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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.