CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

​EUR/USD, GBP/USD and AUD/USD likely to decline again

EUR/USD, GBP/USD and AUD/USD looks set for another bout of downside despite overnight gains.

EUR/USD moves back towards trendline resistance

EUR/USD has managed to marginally regain ground overnight, with the pair rising back towards trendline resistance. This short-term downtrend does still remain intact, albeit at a slower pace than that seen last Friday.

Thus, while a break through the $1.1018 mark would signal a potential bullish phase coming into play, the expectation is that we will see another leg lower from here.

GBP/USD breaking lower after overnight gains

The weakness seen yesterday appears to have set GBP/USD on a bearish phase, despite overnight gains. The shallow nature of upside seen overnight points towards a likely next leg lower which appears to be occurring this morning.

Watch for a break below $1.2899 as a bearish signal, with the stochastic also highlighting an imminent shift in that direction. Should that break occur, look at the 61.8% and 76.4% Fibonacci levels as potential downside targets ($1.2874 and $1.2856).

AUD/USD rally provides selling opportunity

AUD/USD managed to break lower after the recent consolidation, with the price ultimately hitting a one-month low after breaking below $0.6768. With the price moving higher this morning, there is a strong chance that this is a retracement before we see another leg lower.

Watch out for a recent trendline to potentially provide resistance, while Fibonacci resistance lies above that point. Ultimately a bearish outlook remains in play unless we see a break through the $0.6796 swing high established on Tuesday.


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