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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 and NZD/USD

The dollar is coming under pressure, with EUR/USD, GBP/USD, and NZD/USD all pushing higher. Is this a short-term phenomenon or the beginning of a wider shift?

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EUR/USD breaks through key resistance level

EUR/USD has managed to rally through the $1.1432 swing high this morning, breaking out of the downtrend that has been in play throughout the second half of October.

The rally through $1.1421 and $1.1432 looks to set us up for further upside, with the current shift looking likely to provide a retracement of $1.1622 at least. With that in mind, watch out for further upside, with a drop below $1.1391 required to erode that bullish short-term picture.

GBP/USD rallies into notable resistance zone

GBP/USD has also managed to rebound sharply, with the price shifting back into the 61.8% Fibonacci resistance level. That Fibonacci level coincides with the 200-day simple moving average (SMA), highlighting the importance of it as a region of resistance. With that in mind, watch for a potential response from here.

A break above the $1.3258 level would signal a possible wider recovery. Until then, there is a strong chance that this will be a retracement, with either the 61.8% or 76.4% Fibonacci resistance level coming into play.

NZD/USD boosted by Trump-Xi talks

NZD/USD has managed to rebound sharply after US President Donald Trump and Chinese President Xi Jinping seemingly started renegotiating once again.

This is raising the possibility of a bullish reversal for the likes of AUD/USD and NZD/USD, with the market likely to be sensitive to any further announcements. The key for NZD/USD is whether we see a break through the $0.6698 resistance level, with such a move providing us with a signal of a potential bullish breakout for the medium term.

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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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