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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

Despite recent strength, dollar weakness could be on the cards amid 76.4% retracements for EUR/USD and GBP/USD. Meanwhile, USD/JPY is turning lower from a major resistance level.

Yen
Source: Bloomberg

EUR/USD retraces into Fibonacci support

EUR/USD returned to the 76.4% Fibonacci support level yesterday, following a break below an ascending trendline earlier in the week. Given the break through $1.2070 resistance last week, the uptrend remains intact unless we fall below $1.1823.

With that in mind, there is a good chance we could see another move higher from here. A bearish view would only come from a move below $1.1823.

EUR/USD price chart

GBP/USD turning higher after yesterday’s pullback

GBP/USD sold off into the 76.4% retracement yesterday, with the pair turning higher since.

The uptrend remains intact and, as such, a bullish view remains in play unless we see a move back below the $1.3160 support level. 

GBP/USD price chart

USD/JPY weakening from key resistance level

USD/JPY (大口) has enjoyed a bullish week, with the risk-on move seeing people shift out of the yen. However, with the price having rallied into trendline resistance, there is a good chance we could see the pair weaken from here. Watch out for trendline support, which marks the first main hurdle to overcome.

Meanwhile, a break back below ¥109.90 would give greater confidence of a more protracted downward move. Given the potential for another North Korean nuclear test, there is reason to believe that any surprise could be bearish for this pair. A break above ¥110.67 would negate this bearish view.

USD/JPY price chart

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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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