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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, AUD/USD

Sterling is still unable to move higher, but both the euro and the Aussie have found new bullish momentum.

Dollar and pound
Source: Bloomberg

EUR/USD pushes back to highs

Euro bulls have succeeded in pushing EUR/USD back to the $1.1819 highs from the beginning of the week. A close above this level would then open the way to the previous highs at $1.1880.

With this removed, a move to the $1.20 area could be in play. A failure to hold the $1.1819 area would signal a push back to the $1.1740 lows from yesterday. 

EUR/USD chart

GBP/USD fails to rise

A data-heavy week for sterling has failed to really lift GBP/USD, with the push to $1.33 at the end of last week a distant memory. A series of lower highs from that peak last Friday is now in place, with the overnight rally turning down from $1.3220.

A push below $1.3140 opens the way to $1.30. A close above $1.3220 is needed to reverse the current bearish outlook. 

GBP/USD chart

AUD/USD risen higher by buyers

Buyers have stepped in over the past two days, pushing AUD/USD back to $0.7880. A move through $0.79 would open the path towards $0.8075, the high from the summer.

Dips that hold above $0.78 should continue to be buying opportunities. A close below $0.7750 is needed to reverse the bullish outlook here. 

AUD/USD 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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