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.

EUR/USD, GBP/USD, and USD/JPY start to reverse recent fortunes

Dollar strength could help drive EUR/USD, and USD/JPY, while GBP/USD hopes to reverse its recent fortunes after a decline into key support.

EUR/USD rolling over from Fibonacci resistance

EUR/USD has enjoyed a period of strength over the course of the past week, with the pair rising back into the 76.4% Fibonacci resistance level.

That brings us into an area where the pair could reverse lower to continue the downtrend seen throughout 2021 thus far. With that in mind, a bearish outlook is in play here, with a rise up through $1.199 required to bring about a more positive view. To the downside, a break below $1.1861 would add greater confidence to this bearish outlook.

GBP/USD back into key $1.367 support

GBP/USD has been hit hard of late, with the pair falling back into the prior swing low of $1.367. That level was also respected on Friday, with an initial rebound ultimately fading to take us back into key support once again this morning.

Keep a close eye on the $1.3744 resistance level here, with a break through that swing high bringing about a more positive outlook. However, while we could see a positive break through that level, there is also a risk that the bears come back into prominence with a break below the $1.367 level.

USD/JPY turning lower, yet bulls could be back before long

USD/JPY is starting the week on the back foot, with the pair turning lower from the ¥109.94 swing high.

We are seeing the pair weaken from that level, but the recent 76.4% retracement does highlight the fact that this market still does remain within a bullish trend on the daily chart. As such, this current move lower could bring a buying opportunity, with a decline through ¥108.41 required to negate the current wider uptrend.

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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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