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CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

​​EUR/USD and AUD/USD break support amid GBP/USD outperformance

GBP/USD looks set to outperform, with EUR/USD and AUD/USD expected to decline further.

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EUR/USD decline points towards wider reversal

EUR/USD managed to decline below the $1.1066 support level yesterday, with the pair hitting the lowest level since 2 December. However, more importantly, we saw a break from the uptrend in play since the late-November lows.

This points towards a resumption of the long-term downtrend, with further downside likely from here. As such, a bearish outlook is in play unless we see a break through the $1.1118 swing high.

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

GBP/USD appears to have bottomed out

GBP/USD managed to break through $1.3119 resistance this week, bringing about a bullish reversal signal following recent declines.

With that in mind, we are looking for further upside from here. A decline below $1.2954 would be required to negate this bullish outlook.

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

AUD/USD expected to decline following head and shoulders

AUD/USD managed to break below the $0.6838-$0.6849 support zone this week, completing a bearish head and shoulders formation.

With that in mind, it looks likely we will see further downside to come. A break below the $0.6827 level would bring about greater confidence that this next leg lower is coming into play. Until then, the current rise could give way to a wider bullish retracement of the $0.6933-$0.6827 decline.

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

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