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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. 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 instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. 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 and USD/JPY

The dollar is enjoying a strong day, rallying against a number of currencies. Meanwhile, the pound is under pressure after Parliament failed to come to a conclusion last night.

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EUR/USD pushes lower

The decline continues for EUR/USD, with a rally yesterday finding sellers around $1.125.

This resumption of the downward move confirms the bearish view, with $1.1176, the low from early March, the near-term target. Below this, $1.112 comes into view. Any recovery needs to begin with a close above $1.125.

EUR/USD chart
EUR/USD chart

Parliamentary impasse hits cable

The downtrend is still in effect for GBP/USD, and yesterday’s price action confirms that the sellers are still in charge.

Further declines head towards $1.298. Downtrend resistance lies around $1.31, with a break above here targeting $1.315.

GBP/USD chart
GBP/USD chart

USD/JPY recovery continues

The recovery here has been impressive, and now USD/JPY is targeting the downtrend line from the 5 March highs, which would see it challenge ¥111.50. Above this ¥111.80 and then ¥112.20 come into view.

Intraday, the price is probably stretched to the upside, so a pullback would not be surprising, but it remains a possible buying opportunity in the event of a drop back towards ¥110.00.

USD/JPY chart
USD/JPY chart

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