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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 USD/CAD

EUR/USD and GBP/USD are both showing signs of continued decline, while the USD/CAD sell-off is reaching a point where a rebound is looking increasingly likely. 

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EUR/USD looking bearish after recent breakdown

EUR/USD fell below the critical $1.1574 support level last week, breaking out of a three-week range for the pair.

This points towards a likely continuation of the bearish trend that took hold throughout April and May. With that in mind, further downside looks likely, although a break through $1.1610 resistance would point towards a short-term rebound to retrace the sell-off from $1.1744.

GBP/USD sell-off gathers pace

GBP/USD has continued to pull back, with the pair looking set to continue the wider downtrend.

A break below $1.2958 looks likely, upon which we would have proof that the downtrend continues given the creation of another lower low. Any rebound would have to break through $1.3173 to negate this bearish view.

USD/CAD wedge points to a short-term downside

USD/CAD has been gradually declining lately, with the price trading within a falling wedge formation. With the price currently trading at the top end of this pattern, another move lower looks likely from here.

However, given that a wedge formation will typically provide a reversal breakout, there is a good chance that the ultimate resolution of this sell-off is a rebound. With that in mind, watch for an hourly close above $1.3039 as a signal of a potential bullish shift in sentiment. Until then, a short-term downside looks likely. 

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