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

Continued dollar weakness has given EUR/USD, GBP/USD and AUD/USD space to rally, but can they keep up the good work?

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 rally goes on

EUR/USD finds itself back above the 50-day simple moving average (SMA) at $1.1847, marking a significant recovery from the lows of a week ago. The next area to watch would be $1.19, and then above here the September peak around $1.21.

Momentum looks potentially overstretched on the four-hour chart, and move back below $1.1830 would signal a more bearish development. 

GBP/USD faces a crucial moment

For GBP/USD too, the rally off the lows has been impressive, but the pair finds itself stuck below the highs of last week at $1.33. A failure to push on from here would suggest a fresh selling opportunity has developed.

Meanwhile, above $1.33 the $1.3450 level comes into play, and then the September highs around $1.3650.

AUD/USD looks to recent highs

AUD/USD continues to clamber higher, with its eye on the highs of last week at $0.7877.

A failure to take out this high will create a new lower high, with the bears then targeting the $0.7748 low from the beginning of this week. Above $0.7877, the 50-day SMA at $0.7913 comes into focus. 

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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.