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.

Dollar strength bears down on EUR/USD, GBP/USD and AUD/USD

A continued rise in the greenback has seen further modest losses for EUR/USD, GBP/USD and AUD/USD.

EUR/USD begins new week with declines

The EUR/USD continues its retreat from the highs seen last week, although for now the losses are small compared to the gains since early October.

Further declines below the $1.213 level are likely to see this pullback gather pace, targeting the rising 50-day simple moving average (SMA) at $1.2033. The short-term upward move of December appears to be over, but the longer-term rally is still very much in place.

GBP/USD hits one-week low

Here too the price of GBP/USD has broken below short-term support, and further declines below $1.347 are likely to reinforce the negative view for the time being.

Again, however, the longer-term uptrend is intact, with previous weakness in December finding support at the 50-day SMA ($1.3357). A move back above $1.357 provides evidence that the buyers have once again taken control.

AUD/USD continues short-term weakness

A resurgent US dollar is making itself felt here as well, with the AUD/USD seeing its most substantial decline for weeks.

A continued move lower targets the $0.75 region, where a bounce materialised in mid-December, and then close behind this is the rising 50-day SMA at $0.7444. A move back above $0.775 could restore the advantage to the buyers.


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