CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

EUR/USD, GBP/USD and AUD/USD questions remain amid recent consolidation

EUR/USD, GBP/USD, and AUD/USD continue to consolidate, with breakout required to bring more outlook going forward.

EUR/USD turning lower within consolidation phase

EUR/USD is turning lower following a rally into the 76.4% Fibonacci level, with the pair looking set to continue its recent consolidation phase.

Given the fact that this consolidation comes around a long-term descending trendline, there is a possibility that we are looking at topping pattern here. A break below the $1.1711 level would be required to bring such a picture into life. Until we see a break from this recent $1.1711-$1.1916 consolidation phase, opportunities can come in playing the range. With the price breaking through $1.1793 following a rise into Fibonacci resistance, there is a good chance we will see further downside over the short term.

GBP/USD consolidation continues around trendline resistance

GBP/USD is similarly consolidating after a rally into long-term trendline resistance.

That multi-year trendline means we need to see a break through the $1.3186 level to bring about a fresh buy signal for the pair. To the downside, a break below $1.3005 would bring about a bearish reversal signal to build on the recent respect of trendline resistance.

AUD/USD falls back towards trendline support

AUD/USD has weakened back towards an inside trendline, as the pair attempts to create another base to move higher.

The long-term uptrend points towards further upside, but a break through the $0.7190 level would bring greater confidence that such a bullish break is going to occur. Given the recent respect on 76.4% support at $0.7116, that bullish outlook is preferred. To the downside, we would ultimately need to see a break through the $0.7076 level to bring about a bearish outlook.

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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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