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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/JPY

After a few days of weakness, the dollar is back on the front foot, which has resulted in possible lower highs for EUR/USD and GBP/USD. 

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EUR/USD hits 50-day moving average

The rally here has run into the 50-day simple moving average (SMA) at $1.1611, and EUR/USD is encountering some weakness as a result.

However, it has managed to clamber above the zone around $1.155, so this could be a temporary setback. Further gains target the downtrend from the May highs, which would suggest trendline resistance around $1.165. Above here, the $1.175 and $1.185 zones come into view as resistance. A move back below $1.154 would be a bearish development and potentially suggest a move back towards $1.13.

EUR/USD chart

GBP/USD runs into problems around $1.29

Cable’s rally is flagging around the $1.295 area; a failure to recover $1.29 might suggest that a new lower high is in place for GBP/USD and that a move back towards $1.26 is underway.

A push above $1.295 brings the $1.304 level and downtrend resistance from the May highs into view.

GBP/USD chart

USD/JPY hits trendline resistance

USD/JPY is back at the downtrend from the July highs above ¥113.00.

A breakout here would bring ¥111.50 and then ¥112.15 into view as near-term upside targets. If the price falters around trendline resistance, creating a new lower high, then the ¥109.80 support zone is the area to watch, followed by the ¥109.50 area. 

USD/JPY 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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