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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.

EUR/USD, EUR/GBP and AUD/USD try to recover

​​Outlook on EUR/USD, EUR/GBP and AUD/USD.

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​​​EUR/USD dips to one-month low but tries to recover

EUR/USD's retest of the $1.0736 to $1.0766 resistance zone, up of the mid- to late December highs and mid-January low, failed at $1.0804 on Tuesday with the cross heading back down towards its current February low at $1.0656 despite hawkish comments by the European Central Bank (ECB) President Christine Lagarde, mentioning a further 50 basis point (bp) rate hike being in the pipeline.

​Below $1.0656 await the early-December high at $1.0595 and the $1.0574 mid-December low which will remain in focus while this week’s high at $1.0804 caps on a daily chart closing basis.

​Minor resistance below $1.0804 is seen between the early-December high and the mid-January low at $1.0736 to $1.0766.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​EUR/GBP rallies on slowing UK inflation after seven consecutive days of losses

EUR/GBP's seven-day slide from its early-February high at £0.8978 has taken it to Tuesday’s low at £0.8804 before it rallied all the way back to its £0.8897 January peak on weaker-than-expected UK inflation data.

​Consumer Price Inflation (CPI) fell to 10.1% year-on-year (YoY) in January, below expectations of 10.3% and 10.5% in December and by 0.6% month-on-month (MoM), the sharpest monthly decline since January 2019. Core inflation slid to 5.8%, below expectations of 6.2% YoY and 6.3% in the previous month.

​A rise above the £0.8897 January peak and Wednesday’s high at £0.8902 may lead to the £0.8915 6 February low being revisited, above which towers the early-February high at £0.8978. Slips should find support between the £0.8877 late-December high and the 25 January £0.8852 high. ​Further support can be spotted at last week’s low at £0.8824 and this week’s low at £0.8804.

EUR/GBP chart Source: IT-Finance.com
EUR/GBP chart Source: IT-Finance.com

​AUD/USD drops on highest unemployment rate in eight months

AUD/USD first tumbled to its 55-day simple moving average (SMA) at $0.6875 as Australia’s seasonally adjusted unemployment rate unexpectedly rose to 3.7% in January versus an expected 3.5% as was the case for its December near five-decade low. The cross then recovered, though.

​For now, AUD/USD has managed to hold above its early-February low at $0.6956, a fall through which would lead to the 200-day SMA at $0.6807 being eyed. Minor resistance can be spotted at the $0.6983 late-January low.

​Provided that this week’s high at $0.7029 caps, further downside is likely to be seen. If this level were to be exceeded on a daily chart closing basis, the mid-January high at $0.7063 would be back in sight, a rise above which would mean the continuation of the currency pair’s medium-term uptrend.

AUD/USD chart Source: IT-Finance.com
AUD/USD chart Source: IT-Finance.com

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