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

The quiet period for data goes on, resulting in a relatively uneventful session thus far for FX markets.

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.
Euro coin and sterling note
Source: Bloomberg

GBP/USD lower thanks to BoE hinting

Cable’s downward move has been helped along by fresh hints that more easing will be on the way from the Bank of England. As yesterday, we still wait to see if the pair can head back to $1.28, the lows from the beginning of July.

Below here would still point towards the $1.25 level from the mid-1980s. A bounce has to get back above $1.31 and then head towards the August peak just below $1.34.

EUR/USD looks to push lower

Yesterday saw the pair hover above the 200-day simple moving average ($1.1080), and now it looks to push lower, putting the $1.10 area in the frame as the next possible destination.

The problem at present remains that economic data is relatively thin on the ground. Thus dollar strength from Friday’s NFPs is likely to remain the driving factor, potentially putting the uptrend for the year under threat. 

AUD/USD may test April highs

The pair does not look excessively overstretched to the upside, but it continues to falter around $0.7650. Buying dips has made sense for months here, so any weakness into the second half of August is to be welcomed.

A break above $0.7650 would head towards the April high at $0.78. 

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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.