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

EUR/USD and GBP/USD are both falling back against the dollar, while USD/JPY is still unable to break higher.

EUR/USD creates new lower low

The downtrend continues for EUR/USD, with the creation of a new lower low.

The daily moving average convergence divergence (MACD) has rolled over as well, following the lead set by stochastics last week. Further declines head towards $1.112, and then below this it is some distance to $1.085 and the next big area of potential support. Short-term rebounds head towards $1.125, and a daily close above this and then above $1.13 is needed to provide a more bullish view. The longer-term downtrend, in place over the past year, continues to prevail.

GBP/USD bears still in control

Rallies continue to be sold for GBP/USD, as we saw yesterday.

As a result the push lower looks to continue, with the $1.278 area the next zone of possible support. Lower highs have been seen this week at $1.30 and $1.296, so a sustained rally needs to push past these in the short-term.

USD/JPY still stuck below ¥112

The price of USD/JPY rallied through the ¥112.00 resistance zone this morning but was unable to hold on to its gains.

A push below ¥111.60 would be a first step in a bearish direction, breaking rising trendline support from the 22 March low. Below this ¥110.80 and then ¥110.35 come into play.

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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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