CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

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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