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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

Further gains seem likely for EUR/USD and GBP/USD, yet how long this will last is the key question. Meanwhile, USD/CAD continues to show signs of a resurgence.

USD/CAD figures
Source: Bloomberg

EUR/USD turning lower from key resistance level

EUR/USD managed to push into the crucial $1.1250 level yesterday, with the pair turning lower this morning. Given the wider uptrend, this move is what we were looking for as a precursor to another push higher for the pair.

We are now seeing the pair fail to create a lower high, any move lower from here is perceived as a good buying opportunity rather than a reason to sell. As such, a bullish view is now in play unless we break below $1.1109.

GBP/USD rallies after failed attempt to break lower

Yesterday’s inability to break below $1.2775 and $1.2756 provided a subsequent bounce for GBP/USD, with the pair moving into the four-hour 100-day simple moving average (SMA). There is a good chance that this pair will see another leg higher, into the 61.8-76.4% Fibonacci cluster.

However, until we see a break through $1.3048 there is a good chance that this is simply a retracement and precursor to another leg lower. As such, shorts look interesting either at the $1.2950 mark or below $1.2756.

USD/CAD gains ground from key trendline

USD/CAD pushed higher yesterday, with the pair seeing some strength following Thursday’s bounce off trendline support.

With the price having fleetingly pushed through $1.3506, this provides us with a more bullish outlook. A push above $1.3540 would strengthen this view, while a break back below $1.3457 would negate it.

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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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