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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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. 70% 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, GBP/USD, USD/JPY

A mixed picture puts a bullish EUR/USD and bearish USD/JPY against a potential pullback for GBP/USD.

Euro and pound
Source: Bloomberg

EUR/USD likely to turn higher despite early weakness

EUR/USD has been weakening into the open today. However, given the break through the $1.1456 level on Friday, it seems likely we will soon head back through last week’s high of $1.1489 soon enough.

With that in mind, the current pullback is perceived as a retracement before we move higher once more. Only a break back below $1.1370 would negate this view. Watch out for trendline support as a potential area for bulls to come in. Otherwise the Fibonacci retracements come into play below there.

EUR/USD price chart

GBP/USD drifting lower after sharp rally

GBP/USD broke sharply higher on Friday following a retracement earlier this month. The daily chart below highlights the trendline resistance up ahead, which brings about an increased chance of weakness from here.

As such, watch out for a potential pullback from here as we remain within a rising wedge pattern.

GBP/USD price chart

USD/JPY hits trendline support

USD/JPY sold off sharply last week, with the price hitting a long term inside trendline on Friday. This is certainly a near-term challenge, which if surpassed would point towards a move into the ¥1.1099 region.

For guidance on the next move, watch out for a break below trendline support or above ¥113.57 (bullish). Bear in mind that although we could be looking at a possible move lower through trendline support, the medium to long-term view remains bullish thus longs would be considered if we moved into the ¥110.50-¥110.16 region.

USD/JPY price chart

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