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

The dollar remains under pressure, with EUR/USD, GBP/USD, and AUD/USD all gaining ground over the past week. With consolidation currently in play, further upside looks likely. 

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 gradually regaining ground

EUR/USD is on the upward journey within a range that has been in place throughout much of 2018. The recent retracement has been relatively moderate, with the price hitting the 50% level thus far.

Given the shallow nature of this current rebound, there is a strong chance we will see a three-legged retracement, with the price moving into the 61.8% or 76.4% level. As such, while we are expecting to see a move back towards the upper echelons of the range, we could quite easily see a short-term period of weakness beforehand.

GBP/USD consolidates after key break

GBP/USD managed to break through the crucial $1.4244 swing high last week, in turn bringing about a two-month high for the pair.

The next major resistance level to look out for comes at the late-January peak of $1.4346. Until then, we are expecting to see further upside, unless the price manages to break below the most recent swing low (currently $1.4220).

AUD/USD turning higher following pullback

AUD/USD has been recovering ground over the past week, with a falling wedge moving into a crucial 76.4% retracement at $0.7651.

Much of the weakness seen on Friday and in early trade today has been negative, with the price falling close to the $0.7738 swing low. A break below there would point towards a more bearish phase coming into play. However, with the price now starting to recover, it is clear that we could see this rebound continue apace for the time being. 

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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.