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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD, and AUD/USD rebound could prove short-lived

EUR/USD, GBP/USD, and AUD/USD seeing marginal gains, yet the wider bearish picture could come back into play before long.

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EUR/USD declines further amid dovish ECB rhetoric

EUR/USD has continued its decline, with a dovish message from the President of the European Central Bank (ECB) Mario Draghi helping drive the euro lower yesterday.

This took us into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels. Given the prior wedge breakout, this looks like a retracement before we turn higher. However, much of that will come down to whether the US Federal Reserve (Fed) decide to cut rates later today. In any case, a bullish signal comes with a break through the $1.1247 level. Until then, another leg lower remains a distinct possibility.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD turns higher after break below key support

GBP/USD is starting to gain ground after yet another phase of weakness for the pair.

This recent break below $1.2559 and trendline support signals a likely wider bearish phase coming into play. However, for now we could see the pair start to gain ground, with a rise through $1.2605 providing us with a more bullish outlook for the short term. That being said, such a move would only look like a retracement of the decline from $1.2763. Thus, a bearish medium-term outlook remains as long as we are below that $1.2763 level.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD gains ground, yet bearish outlook remains

AUD/USD saw a rare rebound yesterday, with the pair rising back above the crucial $0.6864 breakdown level.

The initial fall below that level signals a return to the wider bearish outlook for the pair, with further downside looking likely before long. A rise through $0.6884 would signal a potential bullish short-term picture coming into play. However, whether that happens or not, a bearish outlook remains unless we see a break above $0.7021.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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