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

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

The dollar is under pressure once more, with EUR/USD gaining while USD/JPY continues to trend lower. Meanwhile, EUR/GBP is challenging a crucial resistance level this morning.

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Despite pullback EUR/USD likely to turn higher

EUR/USD is moving lower this morning, bringing the price towards the 61.8% Fibonacci retracement.

Given the clear uptrend in place over the short term, there is a strong likeliness that the price will turn higher once more in the near term. The middle Bollinger band 20-simple moving average (SMA) is also coinciding with this area of support, adding to the notion that the pair will soon turn higher. A break below $1.2345 would be required to negate this bullish outlook.

EUR/USD chart

EUR/GBP at major resistance level

The pair has continued its short-term uptrend, with EUR/GBP moving into the crucial £0.8911 resistance level.

A break through this level would negate the wider descending channel formation and point towards a resurgence for the pair. However, until then, there is still a chance we could see this resistance level respected once more. With a wedge in place, there is a chance of a move lower, if we were to break below £0.8857.

EUR/GBP chart

USD/JPY turning lower from Fibonacci resistance

USD/JPY has managed to rally into the 61.8% retracement this morning, with the recent downtrend remaining intact, despite short-term gains.

This bounce provides us with another possibility to short this market, with a break through ¥107.91 required to negate the bearish outlook in play.

USD/JPY chart

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