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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

EUR/USD is the clear outperformer on current grounds, yet with the dollar showing signs of potential strength, GBP/USD and AUD/USD are looking in danger of another period of weakness.

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EUR/USD rallies into key resistance level

EUR/USD has managed to rally through a number of resistance points, with the price almost hitting the $1.1746 high from late August. The ability to rally through this $1.1746-$1.1790 resistance zone is going to be key in determining whether we are set for further upside or not.

As such, watch for a potential period of weakness if we do not break higher. With trendline support helping encourage further upside we would want to see a break below that line alongside the $1.1594 level to signal a bearish shift for the pair.

EUR/USD price chart

GBP/USD turns lower from trendline resistance

GBP/USD sold off from a descending trendline yesterday, bringing the wider downtrend into play.

The ability to break below the $1.2799 low will be crucial in determining whether this is the beginning of another leg lower for the pair. Alternatively, watch for a potential break above the $1.2936 level as a signal of impending upside.

GBP/USD price chart

AUD/USD turns lower from SMA resistance

AUD/USD has started to weaken once again following a rally into the 200-day simple moving average (SMA) resistance on the four-hour chart.

The wider context shows a market that is clearly trending lower, and as such it makes sense to look out for another period of weakness before long. The break below the near-term swing low of $0.7307 looks particularly interesting as a signal of further downside to come. Otherwise, a rally through $0.7453 would provide a more bullish view for the pair.

AUD/USD price chart

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