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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 on the rise in early trade

EUR/USD, GBP/USD, and AUD/USD regain ground in early trade, yet questions remain as to whether Brexit-fueled gains are reliable enough.

USD Source: Bloomberg

​EUR/USD pushing higher after latest retracement

EUR/USD is on the rise once again, as easing fears over a complete breakdown in Brexit talks help lift sentiment at the start of a new week.

The retracement into the 76.4% Fibonacci level seen last week provides us with a signal that the current move higher is likely to break through $1.2174 in a bid to continue the current uptrend. With that in mind it makes sense to look out for further gains, with a bullish outlook in place unless we see a break back below the $1.205 lows from last week.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD rallies into Fibonacci resistance on Brexit hopes

GBP/USD has rallied back into the 76.4% Fibonacci support level, following on from a weekend of Brexit negotiations that saw both sides agree to further talks. Given the risk that the Sunday deadline ultimately drew a line under talks, there is at least a glimmer of hope that they could find an agreement ahead of the year-end deadline.

That hope has led us into Fibonacci resistance, with the reaction to this $1.3397 level (76.4%) likely to be key. A break through the $1.3478 swing high would bring about a move confident bullish outlook, yet there is still significant risk that we create another lower high and turn lower from here.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD expected to maintain uptrend

AUD/USD has found resistance at the $0.7572 level following a turn higher in early trade today. With a clear uptrend in play here, it does look likely we will soon enough see another multi-year high for the pair.

As such, it makes sense to look for bullish positions, with a break through $0.7572 providing such a signal. Once such a breakout occurs, stops below the prior swing low (currently $0.752) look attractive as we seek further upside for this consistent performer.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

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