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FX Levels to Watch – EUR/USD, GBP/USD, AUD/USD

Dollar strength is making itself felt, as the euro heads lower, with more hawkish Yellen helping it along the way.

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.
Dollar and pound
Source: Bloomberg

EUR/USD continues its fall

Yesterday saw EUR/USD drop below $1.18, with the loss of key support at $1.1823 providing sellers with the momentum to push the pair lower. The next support looks to be the mid-August low at $1.1662.

As noted yesterday, rallies back to even $1.20 will still be selling opportunities, with a move above $1.2007 needed to indicate a new leg higher is underway.

GBP/USD looks to bounce

Continued USD strength is causing a further retracement in GBP/USD, with the pair heading back towards $1.3268 (the early August high). The uptrend is still intact, but we can expect some additional downside here, unless a reversal back above $1.3427 occurs.

This would then prompt another move towards the high of last week above $1.36.

AUD/USD takes further losses

AUD/USD has been dealt a blow over the past two weeks. The pair is now heading towards the support zone seen in early August (around $0.7807-$0.7849) when the price bounced.

A break below here would head towards $0.77 or lower. A recovery would then target the $0.8075 area, the peaks of the summer.

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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.