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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

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

Currencies continue to see relative quiet when compared to indices, but both the euro and sterling are in strong form.

EUR/USD
Source: Bloomberg

EUR/USD powers higher

So far this morning EUR/USD has managed to hold above the descending trendline from the February highs, having broken back above it last week.

Some selling pressure around $1.2388 is holding back further progress, but from here $1.2411 and then $1.2445 come into view. A drop below $1.2350 would suggest that the sellers are back in control.

GBP/USD looks for more gains

There was little stopping GBP/USD last week, and the price looks set to continue its ascent.

Thursday’s high at $1.4220 is the next target before the January peak at $1.4345. Dips towards $1.40 should continue to find buyers.

USD/JPY aims for a rebound

The downtrend reasserted itself last week, as USD/JPY turned lower from ¥106.50.

Any rebound that fails to move back above this level will likely be another selling opportunity. Previous support from ¥105.24–¥105.60 will now be resistance.

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