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

EUR/USD, GBP/USD and AUD/USD all looking bullish following a short-period respite for the US 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.
EUR/USD figures
Source: Bloomberg

EUR/USD could turn higher from Fib support

EUR/USD has sold off sharply in the second half of this week, with price falling into the 76.4% retracement. Considering the rally coming into this pullback, there is reason to believe we could turn higher from here.

As such, a bullish outlook remains in place until we see a break back below $1.1109. 

GBP/USD gains look likely to be short-term

GBP/USD is continuing to rise this morning, following on from the Bank of England (BoE) bounce yesterday. While there is an increased chance of a rate hike, it is highly unlikely to come into fruition anytime soon.

As such, the bearish trend is likely to return soon enough. Look out for Fibonacci resistance up ahead as a potential reversal area. We would need a break through $1.2977 to negate this bearish bias.

AUD/USD heading higher after pullback

AUD/USD is turning higher this morning, off the back of a pullback to $0.7567 support once more. The fact that we didn’t break that level means we are likely to turn higher from here, with an hourly close below $0.7567 needed to negate that view.

The long-term picture looks bullish, which helps drive this short-term view.

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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.