CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

FX levels to watch: EUR/USD, GBP/USD and USD/JPY

The dollar is weaker as the Fed begins its two-day meeting, but given the recent trends in FX markets this may not last long.

EUR/USD rallies into possible selling zone

The EUR/USD is making another attempt to break higher, spiking towards $1.137.

But such surges have not turned out well over the past month. We would need to see a close above $1.14 to provide more evidence that this breakout has some strength behind it. Otherwise it will merely provide another selling opportunity.

GBP/USD on the up for now

GBP/USD continues to rebound from the lower low created last week, but it now needs to clear trendline resistance from the November highs, which would suggest a push to $1.27.

A failure to maintain these gains would be another selling opportunity. Above $1.27 the $1.2773 area comes into play.

USD/JPY back to crucial support

The area around ¥112.30 has been crucial support over the past six weeks for USD/JPY, so if this holds a bounce back to ¥113.60 is possible.

A failure to hold the zone brings ¥111.30 into play, the lows from late October. It will be crucial to watch the intraday price, to see if a rally from the lows has legs. Any bounce that fails to recover ¥113.00 would be a selling opportunity.

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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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