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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, GBP/USD and USD/JPY

Recent dollar strength across EUR/USD and GBP/USD has brought about the chance of further downside for both pairs. Meanwhile, USD/JPY looks set to turn lower once more today.

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EUR/USD pullback within reach of key support level

The EUR/USD pullback has dropped beyond the 76.4% retracement, bringing about a heightened risk of a bearish breakdown.

We would need an hourly close below $1.2239 to signal a more bearish picture for the pair and, until then, there is still a good (but lessened) chance the pair will turn higher from here. An hourly close above $1.2345 would provide a more reliable signal that we are set to shift into a more bullish phase.

EUR/USD price chart

GBP/USD rise could be short-lived

GBP/USD is gradually trying to regain ground after the selling seen earlier in the week. The break below $1.4070 paves the way for further downside, and the fact that we have seen such minimal upside means we are likely to see another leg lower soon enough.

A bearish signal would come with an hourly close below $1.4005. Conversely, we would need an hourly close above $1.4244 to bring a more bullish outlook.

GBP/USD price chart

USD/JPY turning lower from resistance zone

USD/JPY is selling off sharply this morning, following a rally into a zone of descending trendlines.

With the pair having provided a handful of lower highs over the past two months, there is a good chance we will see another leg lower from here. With that in mind, a bearish outlook is in play unless we see the price break above ¥107.01.

USD/JPY price chart

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