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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

Dollar weakness continues to drive the euro and sterling higher, while in AUD/USD, this has been combined with a hawkish set of minutes, prompting a substantial rally. 

Australian dollar
Source: Bloomberg

EUR/USD going up on the back of a weak dollar

Dollar weakness continues to drive EUR/USD higher, with resistance at $1.1536 being tested early on this morning.

The level that bears need to break, if they are to get any chance of reversing the current trend, remains at $1.1370. Otherwise, the sequence of higher highs and higher lows is still intact. Above $1.1536, $1.1616 and then $1.1714 comes into play.

EUR/USD price chart

GBP/USD to move above $1.3113?

Bulls defended the crucial $1.3048 level yesterday, keeping the breakout intact. Now it has bounced off this level, and could well push on above the $1.3113 level.

In the longer term, GBP/USD could now head towards the September 2016 peak at $1.3427. It needs a daily close back below $1.3048 to put a more bearish spin on things, and even then it needs to break $1.28 to really signal that a longer-term drop is at hand.

GBP/USD price chart

AUD/USD breaks resistance

The breakout for AUD/USD continues, with resistance at $0.7835 finally broken. The steady rising trend since the June low means that we would need a close below $0.78 to begin to look at this in a more bearish way. But it looks to be a dip buyers’ market from this point onwards.

The next big area to watch from here is $0.8075.  

AUD/USD price 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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