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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, GBP/USD and AUD/USD all at risk of turning lower

Bullish momentum is waning in EUR/USD, GBP/USD and AUD/USD, with a rebounding US dollar threatening the broader pro-risk atmosphere.

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EUR/USD downtrend back on?

It looks increasingly like the downward move in EUR/USD has resumed, as the price retreats once again from $1.118. This double-top is a bearish formation, and so far it looks like the price is likely to continue moving lower.

Intraday, the price has managed to hold around $1.117, but if bearish momentum resumes and pushes the price below this level, then it is possible that we will see a move back to $1.0875, the lows of late September. A rally back above $1.114 would be needed to suggest a more bullish view is emerging.

EUR/USD price chart Source: ProRealTime
EUR/USD price chart Source: ProRealTime

GBP/USD edging lower

The GBP/USD price attempted to rally off short-term trendline support yesterday, but the attempt failed and since then we have seen it drop below $1.289.

A push below $1.28 would confirm a more bearish view in the short term, although it looks like even a drop towards $1.26 would still leave the nascent uptrend from the October low in place.

GBP/USD price chart Source: ProRealTime
GBP/USD price chart Source: ProRealTime

AUD/USD searches for bullish catalyst

AUD/USD has enjoyed a strong rally from the September low and possible double-bottom around $0.67.

But it needs to maintain upward momentum to avoid the possible resumption of the much longer-term downtrend. At present, dip buyers continue to maintain forward momentum, as we have seen over the past two days with dips towards $0.688. A move back below $0.684 would be a first sign of some weakness, while those of a bearish view will watch for a bearish crossover on the daily moving average convergence/divergence (MACD).

AUD/USD price chart Source: ProRealTime
AUD/USD price chart Source: ProRealTime

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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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