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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

FX levels to watch: EUR/USD, GBP/USD, USD/JPY

The dollar’s run has been stopped in its track by Donald Trump, who has taken aim at the Fed’s policy of raising interest rates. 

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EUR/USD lifted as Trump takes on Fed

EUR/USD bulls have been given an opening by remarks from the White House that have put pressure on the dollar.

The rebound from $1.13 continues, but buyers will want to see the price back above $1.1550 in order to suggest that the rally has broken through the previous support zone around this level that has now become resistance. From here, $1.1628 then comes into play, followed by the $1.1650 area and downtrend resistance running from the May highs. Dips towards $1.14 may find buyers, with a move below $1.1350 suggesting a move back to $1.13 support.

EUR/USD chart

GBP/USD reclaims $1.28

Here too for GBP/USD a rebound is in play, but it remains a short-term bounce unless we see a firm push above $1.31.

Any failure below this level would suggest a chance to sell the pair once again, with a view to it falling back to $1.2635 and the lows from last week. Above $1.31, $1.3204 comes into play.

GBP/USD chart

USD/JPY falls to 200-day SMA

USD/JPY dropped below ¥110.30 support that has held since early July, but has bounced from the area of the 200-day simple moving average (SMA) at ¥109.85.

The price continues to be constrained by the descending trendline from the July high, so any sustained rebound needs to move above this line (which would suggest a push above ¥111.00). Further declines will see the ¥109.50 support zone tested.

USD/JPY chart

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