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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 and NZD/USD

European currencies look set for near-term weakness, while NZD/USD continues to power upwards.

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EUR/USD turning lower from Fibonacci resistance

EUR/USD has managed to rally into the 76.4% retracement this morning, following on from a wider downturn from the 61.8% resistance at $1.1394.

With a bearish, engulfing pattern looking likely from this resistance level, coupled with a wider bearish trend over recent months, another bearish period looks likely for the near term.

GBP/USD rally proving short-lived

GBP/USD has been moving sharply higher this morning, yet just like EUR/USD, we are seeing the 76.4% Fibonacci resistance level respected.

The trend over the past week has been one of consolidation, with a failure to break below the crucial $1.2661-$1.2696 support zone meaning we still await the next signal of where we go from here. A break below that zone would set us up with another bearish phase. Conversely, should we see a break through the $1.2850 mark, it would bring about a more bullish view for the near term.

NZD/USD surges higher from triangle formation

NZD/USD has managed to continue its bullish trend, with an upside breakout from a symmetrical triangle formation providing another leg higher for the pair.

Further gains do look likely, with any retracement looking like a buying opportunity as long as we do not break below $0.6851.

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