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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

Powell’s speech yesterday has been the catalyst for some interesting moves across the FX space.

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EUR/USD given a boost by falling US dollar

The weakening of the US dollar has prompted a sharp rebound in EUR/USD, and the price is now testing the area above the Monday high of $1.138.

Further gains target the $1.147 area that was strong resistance earlier in the month. Some retracement of the sharp move higher might provide a fresh buying opportunity, but it needs a move back below $1.126 to suggest that a more bearish outlook prevails.

GBP/USD rallies on Powell speech

While cable bounced following the Federal Reserve (Fed) chair Jerome Powell speech, it has failed to create a new higher high for GBP/USD, stuck at $1.285.

We may see fresh selling pressure emerge. A move above $1.29 is needed to put a more bullish view on the pair.

USD/JPY gives back gains

After falling sharply, USD/JPY may try to rebound, but it will need to recover ¥113.60 otherwise a more bearish view begins to emerge.

Below ¥113.20 the price heads towards ¥112.40.

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