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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 looks set for further losses, while sterling is attempting to continue its rebound from Friday’s lows.

EUR/USD
Source: Bloomberg

EUR/USD turns lower again

A fresh low for EUR/USD on Friday confirms the downtrend, and the subsequent rally appears to be running out of steam at $1.1750.

Further losses that break the Friday low will then challenge the key $1.1662 level. If this goes, then the $1.15 area comes into play. A move above $1.18 is needed to provide indications that further gains are on the way.

GBP/USD tries for a bounce

Sterling bulls will be hoping that the bounce off the lows on Friday for GBP/USD marks the end of the pullback from the $1.36 September highs.

However, for this to materialise we will need a close above the 50-day simple moving average (SMA) at $1.3135, which will create a new higher high, above the $1.3290 seen early last week. A move through Friday’s $1.3027 low would then leave the pair targeting the rising trendline off the March lows. 

USD/JPY falls away from ¥113

Friday’s spike and then swift reversal from ¥113.00 would seem to suggest that the dollar bears are back in control, although the ¥112.30 zone has provided good intermediate support for USD/JPY (大口) over the past two weeks.

Below this, ¥111.46 and then ¥111.07 come into play as downside targets. A close above ¥113.50 is needed to put a more bullish outlook on the situation.

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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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