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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/JPY

The euro has been bolstered by fresh PMI figures and a speech by Mario Draghi, while cable looks set for further losses. 

Dollars and euros
Source: Bloomberg

EUR/USD staying above $1.17

EUR/USD has fought hard to hold above $1.17 all week, and today has been no different. However, despite yesterday’s breakout above $1.18, the price still faltered below the $1.1850 high from 11 August. If the pair can break the descending trend on the four-hour chart, then this area from $1.1830 to $1.1850 is the key one to watch, as a break above here would target $1.19, the high from the beginning of August.

Bears are likely to remain frustrated unless we see a close below $1.1650, which would clear the support zone that has held for almost a month now.

GBP/USD facing more losses

GBP/USD continues to endure losses, with the $1.28 level now looking under threat. Yesterday the price held above the low from mid-July ($1.2811), but a close below here would open the way to $1.2775 and then $1.2706.

For bulls, the 50-day and 100-day simple moving averages (SMAs) at $1.2941 and $1.2879 respectively, now stand as resistance.

USD/JPY about to move higher?

Dips below ¥109 over the past week have found buyers on USD/JPY, so it looks like a move back towards ¥110 and higher could be on the cards.

Support has been strong in the ¥108.50 area, so it needs a close below here to really suggest the downside move is back on. 

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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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