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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 AUD/USD

Gains for EUR/USD and AUD/USD could point towards further upside to come. However, with long-term uptrends in place, another leg lower always seems to be around the corner.

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EUR/USD drifts lower after recent rebound

EUR/USD is moving lower, following on from a rebound in the second half of last week. With such a clear downtrend in play, there is always a strong likeliness of further downside to come.

However, with the break above $1.1428 on Friday, there seems to be a heightened chance of a stronger short-term rebound. A break back below the $1.1300 mark would signify a continuation of the downtrend. However, until then, there is a strong chance we will see the pair gain further ground, if only to retrace more of the sell-off from $1.1628.

EUR/USD chart

GBP/USD consolidating after recent decline

GBP/USD has been gradually gaining ground over recent trading days, with the price seemingly retracing the decline from $1.2828.

However, given the upside break in EUR/USD, there is a chance that we are going to see a more protracted move to the upside. A rally through $1.2828 would be required to bring about this more bullish short-term view. Until then, there is a good chance we will see the pair turn lower again soon enough.

GBP/USD chart

AUD/USD rally could bring shorting opportunity

AUD/USD has been gaining ground since the middle of last week, with the pair approaching the 50% retracement of the $0.7453-$0.7202 decline.

This upside looks likely to persist for now, with a rally above the 61.8% Fibonacci retracement looking likely. Such deeper retracements could provide a strong chance to look for the next short in AUD/USD. Unless we see the price rally through $0.7453, any short-term upside is seen as an opportunity to sell the pair.  

AUD/USD chart

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