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

The dollar has been in decline, with GBP/USD and EUR/USD strength coupled with a weaker USD/JPY. However, with key levels ahead, the Fed’s outlook this evening will likely set us up going forward.

EUR/USD rallies through notable swing high

EUR/USD has once again muddied the water, with the rally through $1.1393 providing a new higher high to negate the lower low formed with the break below $1.1305.

That provides a potential bullish phase coming into play, which will likely be determined by affairs at the Federal Open Market Committee (FOMC) later today. Watch for a break through the $1.1443 level to confirm the more bullish view that is building with the break above $1.1393.

GBP/USD rally takes us back above 61.8% resistance

Once again, GBP/USD rose into the 61.8% level, with the pair looking to have made an ABC three-legged retracement of the decline from $1.2912.

A rally through that swing high would point towards a likely period of upside. Until then, there is a good chance that we will see the pair turn lower once more.

USD/JPY hits trendline support

USD/JPY has declined off the back of the 76.4% retracement, with a head and shoulders ultimately driving a decline in the pair towards the ¥112.23 swing low.

That has also seen the descending trendline come into play, raising the possibility of a rebound from here. Much of it will come down to the FOMC dot plot later today. Until then, there is a chance we will consolidate above trendline support.


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