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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: GBP/USD, EUR/USD and AUD/USD

The bullish breakout for AUD/USD points towards a potential bullish shift against the dollar. However, with GBP/USD and EUR/USD still trading well below key resistance, the European downtrend remains intact against the greenback.

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GBP/USD continues to climb after recent sell-off

GBP/USD is continuing its ascent following the sharp deterioration through last week. This looks likely to be a retracement, yet given the size of the initial downturn, it is likely that we will see further upside in the near term as the pair forms a deeper retracement.

It looks likely that the move higher we are currently seeing is a retracement rather than a bullish reversal. With that in mind, look out for further upside to bring us into a deeper retracement, where a break above $1.3072 would be required to negate the expectation of a bearish turn before long.

GBP/USD chart

EUR/USD rallies into deep retracement level

EUR/USD has been regaining ground, with the pair moving into the crucial 76.4% retracement at $1.1433.

There is a high likeliness that we are seeing a retracement in play here, with a break above $1.15 required to negate the premise that this a short-term pullback before we see the pair turn lower once again. Until then, there is a strong chance we will begin to weaken again before long.

EUR/USD chart

AUD/USD breaks through key resistance level

AUD/USD has managed to break through a crucial area of resistance, with the rally above $0.7315 pointing towards an end to the downtrend in play throughout 2018 so far.

With that in mind, further upside looks likely, with a bullish short-term outlook in play unless we see a break below the $0.7250 swing low. Below that, we would likely be looking at a retracement of the rally from $0.7164.

AUD/USD chart

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