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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

The euro’s brief bounce has subsided, while the Aussie is hoping to break higher and continue its January rally.

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EUR/USD bears maintain their grip

Yesterday's EUR/USD rally to $1.20 was rapidly countered by heavy selling, which suggests further downward pressure will materialise.

Earlier in the week, $1.1915 acted as support, so a push through here opens the way to $1.1850 and then $1.1725. However, before this is reached the rising trendline from the November lows comes into play. 

GBP/USD aims for a rebound

Sterling weakness has dominated over the past few days, so we continue to look for more downside for GBP/USD, even within the context of a broader uptrend.

As the price pushes lower, $1.3466 and then $1.3341 come into play. However, the uptrend remains intact, so any higher close would be regarded as creating the new higher low that points towards a fresh rally. 

AUD/USD aims for a breakout

Dip buyers got their chance yesterday, as the price for AUD/USD fell back to $0.7807, before moving on.

An attempt to move above the highs from earlier in the month was defeated overnight, but a close above here would put fresh momentum into the uptrend, with $0.7897 and then $0.7939 coming into 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.

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