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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

Dollar weakness is driving new highs in EUR/USD, while cable has recovered and USD/JPY looks set to break lower.

Dollar and euro
Source: Bloomberg

EUR/USD highest since 2015

The uptrend has come roaring back to life on EUR/USD, pushing to its highest level since 2015. With the price overextended intraday, it may be prudent to wait for a dip to buy, perhaps with a move back to $1.1950, but overall the path looks higher from here.

Possible resistance might be the $1.2042, the July 2012 low, but it seems that the pair is in no mood to stop just yet. 

GBP/USD pushed by dollar weakness

The recent bout of USD weakness has put the fight back into GBP/USD as well. The first area to watch is $1.3048, assuming the price can breach the 50-day simple moving average (SMA) at $1.2954. Above here the August peak at $1.3250 comes into play.

A reversal back below $1.2775 would put a more bearish spin on things, but pullbacks towards $1.29 or $1.2850 should see more buyers emerge. 

USD/JPY about to break support?

Support has been found at ¥108.50 for the past couple of weeks on USD/JPY, but it looks like this is about to give way.

The June low at ¥108.13 is the area to watch, and then ¥107.45 below this. Rallies back in the direction of ¥109.40 look to be further selling opportunities. A move above ¥111 is needed to negate the bearish outlook.

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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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