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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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

The US dollar begins to look more bullish within EUR/USD and USD/JPY after Trump’s pro-dollar comments. Meanwhile, EUR/GBP begins to turn higher from channel support.

EUR/GBP
Source: Bloomberg

EUR/USD rally may not last

EUR/USD has managed to regain ground following a Trump-fueled sell-off yesterday. The break below $1.2384 brings about a heightened chance that we will begin to trend lower over the short term.

As such, the recent bullish outlook is tempered somewhat, with a strong chance that this morning’s gains are a retracement rather than a push into new highs. 

EUR/GBP rallies from crucial support zone

EUR/GBP has managed to rebound from the crucial £0.8689 support level, with the pair looking to continue trading within the descending channel formation.

Confirmation of a bullish outlook for the near term would come with a break through £0.8795 resistance. Until then, there is still a chance that we are looking at a retracement within the recent sell-off. 

USD/JPY shows initial signs of strength

USD/JPY managed to break through the ¥109.47 swing high yesterday, with the price gaining ground after US President Donald Trump’s comments.

This raises the chance that the price will move into a more bullish phase for the short term, with the near-term directional bias being dictated by a move below ¥108.50 (bearish) or above ¥109.77 (bullish).

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