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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.

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

Some overnight weakness for the dollar has been swiftly reversed this morning.

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Downtrend for EUR/USD

The price for EUR/USD rallied to the descending trendline, but while it managed to move above this trendline, it was not able to hold above it.

The turn lower now suggests that the downtrend is back in play, and we look for a move to $1.2250 and then $1.2165. A rally back above $1.24 is needed to reverse the bearish outlook.

GBP/USD on a strong run

There has been little stopping the pound in recent days, and the move above $1.4145 should mean that the price for GBP/USD is headed towards $1.4248.

We have yet to see a real retracement, but it looks like any such pullback remains a buying opportunity.

AUD/USD faltering despite rally

The price for AUD/USD has finally managed to rally, but it is already faltering.

Further declines will target the $0.7671 low from earlier in the week. Even a recovery that moves back above $0.7790 would still be a sell since the pair remains stuck in a downtrend.

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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