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CFDs are complex instruments. 72% 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.

Dollar weakness gives EUR/USD, GBP/USD and AUD/USD a breathing space

A small reversal in the US dollar has allowed the euro, sterling and Aussie to recover some lost ground.

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EUR/USD climbs back above recent low

The hopes of the sellers have been dashed for now as EUR/USD reverses from Friday’s low and stages a two-day rebound that has carried it back towards $1.19.

There is still a lot of ground to recover to put the price back on a more bullish footing, with a rally above $1.194 being a good first step. Sellers will hope that the return of US traders from their holiday can provide the spark for a fresh drop back below $1.188.

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

GBP/USD recovers $1.38

Having recovered back above $1.38, GBP/USD is attempting to build a more bullish view that may yet take in a rebound to $1.40.

If it can move above this latter level then the bearish view will be firmly cancelled out for the time being, and an eventual move towards $1.42 can be contemplated. Alternatively, sellers will want to see the price reverse and move back towards $1.37.

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

AUD/USD stages a bounce

As with the other two pairs, for now it looks like AUD/USD's bounce of the past three days has firmly cancelled out the bearish view.

Having rebounded from $0.7473 for a second time in less than a month, the price has now established a firm line that will need to be firmly broken to the downside to renew the bearish view. Buyers now need to clear the vital area around $0.76, which marked resistance in June but was support earlier in the year, in order to create the conditions for a new bigger move higher.

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

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