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CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

FX levels to watch – EUR/USD, GBP/USD, USD/JPY

USD strength has seen falls for EUR/USD and GBP/USD this morning, but USD/JPY is sounding a possible alarm.

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EUR/USD falters near September high

EUR/USD tried to break above the September high last week, but has turned lower.

Since November we have seen a sequence of higher highs and higher lows, so any pullback that holds above $1.1715 remains a potential buying opportunity. Above $1.2092, $1.2247 and then $1.2298 come into play as targets.

GBP/USD still pushing higher

GBP/USD continues to record higher lows in its steady rally from last March. Any pullback that stays above $1.33 constitutes another such higher low, and thus a possible buying opportunity.

The push last week above the December highs helps to burnish the uptrend’s credentials, so further gains above the recent $1.36 high will target $1.3659, the peak from September.

USD/JPY downtrend revives

If USD/JPY turns lower from current levels it will record a new lower high in the downtrend from the November high.

We could see ¥112.00 come back into view, being a key level of support since early December. Above ¥113.50, the ¥113.64, ¥113.75 and then ¥114.37 come into play. 

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