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

Strength is seen in a number of pairs, as the US dollar rally continues to run out of steam.

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 and US dollar notes
Source: Bloomberg

GBP/USD set to rally off $1.22

Having built a base at $1.22 this week it looks like we could be seeing the beginning of a rally here. A move through $1.23 would open the way to targets at $1.2360 and then $1.2411.

Longer-term, a move could head towards $1.26 and then $1.2723. It would take a move below $1.2175 to suggest further weakness ahead.

EUR/USD remains bullish, despite last night’s drop

After yesterday’s spike higher, we have seen the price edge lower overnight, but the bullish outlook seems intact. A dip towards $1.0480 should bring out fresh buyers, with $1.0583 and then $1.0667 the next areas to watch. It would take a move below $1.0380 to indicate that the surge this week has been negated.

AUD/USD to test $0.7272

Here too there was a sizeable rally, recovering ground lost over the previous five sessions. As a result, we look for a test of $0.7272 in the coming days, with the next area above this to watch being $0.7311, and then $0.7369. A strong area of support has been seen around $0.7150, so a close below here is needed to change expectations here. 

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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.