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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 USD/JPY

FX markets are quiet compared to equities, but the downtrend continues for EUR/USD, though USD/JPY has been able to recover for now.

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EUR/USD still in broader downtrend

The price of EUR/USD fell back sharply yesterday, but as has happened twice this week, it found support around $1.131.

However, sustained rallies have been missing of late, as we saw yesterday with a push to $1.14. A close above $1.142 is needed to break above the recent lower high. Meanwhile, below $1.13 the price will head towards $1.1268 and then $1.1216.

GBP/USD rallies back above $1.27

Dips in GBP/USD below $1.27 this week have found buyers, but intraday rallies have been sold, as we have seen so far this week.

The following have all come in as areas of resistace: $1.28, $1.285 and $1.29, so these areas will need to be breached. Below $1.27, the $1.2635 and $1.259 areas come into view.

USD/JPY recovers after losses

For now the price of USD/JPY has bounced, potentially forming a higher low. If it can hold these gains and move back above the 50-day simple moving average (SMA) of ¥113.06, then a rally back to ¥114.00 and higher is possible.

Further declines target ¥112.30 and the October low at ¥111.37.

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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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