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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how 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/CAD

The dollar appears to be moving back into a bullish phase, with EUR/USD and GBP/USD turning lower. Meanwhile, USD/CAD has been approaching the top end of its range, as we await either a breakout or reversal. 

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EUR/USD rally could be shortlived

EUR/USD has been gaining ground this morning, following on from a week of losses that brought the price below the 76.4% retracement at $1.1771. With the wider creation of higher highs and higher lows still in place, we would need to see a break back below $1.1713 to truly negate that bullish view.

However, with the break below the 76.4% level, there is a good chance we could continue on the recent sell-off. As such, a break above $1.1815 would provide a bullish outlook, whereas a fall below $1.1713 would provide a bearish outlook.

EUR/USD chart

GBP/USD continues its descent

GBP/USD is turning back into the $1.3355 support level this morning, as it looks to follow up on Friday’s losses.

Between the $1.3355, ascending trendline, and $1.3320, we have a host of support levels, which would bring a bearish view if broken.

GBP/USD chart

USD/CAD trading near range top

USD/CAD has managed to regain ground over recent months, with the pair looking to shift into a more bullish phase. With that in mind, the wide range seen over the past month is expected to ultimately exit towards the upside.

Whether we get that bullish breakout above $1.2917 or not, this week remains to be seen. Until then there is a chance of a short-term bearish move to continue the range. A break below $1.2805 would provide a bearish signal for the shorter term. Until then, the ascent we are looking at needs to be put into the context of the wider range. 

USD/CAD chart

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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