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FX levels to watch - EUR/USD, GBP/USD, AUD/USD

The euro has held its gains and is pushing higher, but the Aussie is losing ground against the dollar. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Euro and pound coins
Source: Bloomberg

EUR/USD controlled by the buyers

After a consolidation session yesterday, there are now signs that the buyers are taking control here once again. The price is testing the water above yesterday’s high of $1.0890, with a move above here leaving it clear to test the $1.0906 high from late March. Above here the longer term view would suggest a move towards the downtrend line off the April 2016 highs in EUR/USD, in the direction of $1.10.

Yesterday bears failed to get the price below $1.0820, so this is their first task to begin a new move lower.

GBP/USD – wait and see

The election announcement has left GBP/USD sitting at $1.28 against the dollar, with no sign that the bears can break the $1.2775 support level that has held over the past week.

Admittedly, we haven’t seen much upward momentum either, so it is case of waiting to see whether $1.2775 or $1.2850 breaks first. 

AUD/USD in a risky territory

AUD/USD has reversed course against the US dollar, giving back yesterday’s gains and falling below the 200-day simple moving average (SMA) at $0.7552.

Now the $0.7473-$0.7494 zone is in sight as the next potential area of support. If this holds, a move back to $0.7560 is possible, but a drop below here would leave the pair exposed to a fall to $0.7364 and then $0.7310.

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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.