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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/JPY

Dollar weakness is dominating, with GBP/USD and EUR/USD turning higher, while USD/JPY begins the sell-off once again.

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EUR/USD could reverse higher after deep retracement

EUR/USD managed to stage a significant bounce-back yesterday, following on from a period of downside for the pair. Until we break below $1.2205, there is a chance we could move back onto the wider bullish trend.

The overnight sell-off has brought it back into the 76.4% retracement, with the price currently turning higher. A push through $1.2352 would bring greater confidence in a bullish shift for the pair.

Will GBP/USD break out of recent downtrend?

GBP/USD is also starting to push higher this hour, coming off the back of yet another rally into trendline resistance yesterday afternoon. This current move through trendline resistance brings about a heightened chance of a move through the $1.3989 resistance level.

Given the recent bounce from trendline and 76.4% support, there is a reason to believe we are about to see the beginning of the next move higher for the pair. Watch for an hourly close above $1.3989 to gain greater confidence of this bullish shift.

USD/JPY looks set for next leg lower

USD/JPY is moving sharply lower this morning, coming off the back of a short-term ascending channel formation into ¥107.14 resistance.

With a downtrend in play over the second half of this week, there is a good chance we will see further downside from here, with a break below ¥106.59 looking likely. A break above ¥107.14 would raise questions over the longevity of this current move lower.

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