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

Dollar strength appears to be abating, with gains for cable and the Aussie.

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.
Australian dollar (AUD)
Source: Bloomberg

EUR/USD fights to create a new high

The rally from last week’s lows goes on for EUR/USD, with the potential for further gains should the price move on above $1.1790.

A close above here targets $1.1830, and then on to $1.1880, but a turn lower would reignite the downward move and head towards $1.1662.

GBP/USD maintains its upward move

GBP/USD has solidified its gains from yesterday and is pushing higher. We still need to see a move above $1.33 to create a new higher high in the downtrend off the September highs, but for now the buyers appear to be in charge.

Above $1.33, the $1.3427 and then $1.36 levels come into play.  A turn lower back below $1.3050 would suggest a drop to the late August low at $1.29.

AUD/USD holding key support

AUD/USD has bounced off the $0.7748 level that was major resistance back in the first quarter (Q1). If it holds this level, the next area to watch is $0.7877, which is the high from last week.

A move above here would cement the idea that the drop from the August highs has run its course. A close below $0.7748 would suggest a bigger drop to $0.7713 and then $0.7641. 

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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.