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.

FX levels to watch: EUR/USD, GBP/USD and AUD/USD

GBP/USD and AUD/USD look at risk of a bearish turn, while EUR/USD looks like the potential outperformer.

EUR/USD consolidates above key resistance

EUR/USD broke through the $1.1341 swing high this week, seemingly paving the way for further upside.

A break higher seems likely in the near future, with a break below $1.1275 required to negate this bullish picture. That being said, be aware that any such bullish break looks likely to be a retracement of the wider sell-off from $1.1514.

GBP/USD consolidates below Fibonacci resistance

GBP/USD has rallied into the 76.4% retracement level this week, with the pair consolidating since.

There is a chance we could turn lower from here, yet it makes sense to look out for a break below $1.3012 as a signal of impending weakness. Conversely, if we did see a break through that Fibonacci resistance at $1.3113, and more importantly the $1.3218 swing high, this would look to pave the way for a wider period of upside.

AUD/USD breakdown points towards further losses

A volatile week for AUD/USD has seen a rally into the 61.8% Fibonacci resistance off the back of a strong jobs report, followed by a sharp decline after news of trouble for Australian coal exporters in China.

However, the sum total of this has been a bearish breakdown to build on the initial signal brought about by a fall below $0.7076 earlier in the month. It looks like we are set for further upside, with any rally in the short term looking like a selling opportunity. As such, a bearish outlook is in play unless we see a break through the $0.7207 level.

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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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