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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.

​​​EUR/USD trades in six-week, EUR/GBP in five-week lows while AUD/USD range trades​​​

​​Outlook on EUR/USD, EUR/GBP and AUD/USD as France skirts a recession and Australian retail sales disappoint.

Euro Source: Bloomberg

EUR/USD dipped to levels last traded in mid-December

EUR/USD remains below its 200-day simple moving average (SMA) at $1.0843, having slipped to a six-week low at $1.0796 on Monday above which it trades as the French economy stalls in the fourth quarter and skirts a recession.

​A fall through $1.0796 may lead to the 6 November high and December low at $1.0756 to $1.0724 being eyed. Minor resistance above the 200-day SMA can be spotted at Monday’s high at $1.085 and also at the 5 January low at $1.0877.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​​​​EUR/GBP drops to new five-month low

​EUR/GBP’s slide from its £0.8714 December high has taken it to Monday’s £0.8514 five-month low which sits within the significant June-to-August support area at £0.8519 to £0.8493. This zone is expected to hold, at least over the next couple of days, but if not, the April 2021 low at £0.8472 would be in focus.

​Resistance above Monday's £0.8544 high lies at the £0.855 December low with further resistance seen along the December-to-January downtrend line at £0.8556. Whilst it caps, downside pressure should retain the upper hand.

EUR/GBP chart Source: IT-Finance.com
EUR/GBP chart Source: IT-Finance.com

​AUD/USD range trades above one-month low

​AUD/USD’s descent from its five-month December peak at $0.6871 has taken the cross to its mid-January $0.6525 low above which it has been trading in a tight sideways range ever since.

​An attempt to the upside by reaching $0.6624 has been made on Tuesday morning amid an unexpected fall in Australian retail sales. If overcome, the 55-day SMA at $0.6651 may be reached. Support is seen along the 200-day SMA at $0.6578 and along the October-to-January uptrend line at $0.656 ahead of last Tuesday’s $0.6552 low.

AUD/USD chart Source: IT-Finance.com
AUD/USD chart Source: IT-Finance.com

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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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