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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, GBP/USD and AUD/USD continue their short-term weakness

Dollar strength has led to short-term losses in EUR/USD, GBP/USD and AUD/USD.

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EUR/USD edges down once more

EUR/USD has continued the run of declines seen on Thursday, returning to trendline support from the early-December low.

A move below $1.223 would trigger a more short-term negative view, and could open the way to the 50-day simple moving average (SMA) at $1.2023. A rebound targets Wednesday’s highs above $1.23.

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

GBP/USD remains in short-term triangle

A short-term descending triangle has formed, as the GBP/USD price sees a run of daily lower highs but holds above support at $1.355.

It is also holding above trendline support from early December, therefore, a move below this and below $1.355 support would open the path to some more short-term weakness, potentially as far as the 50-day SMA at $1.336.

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

AUD/USD benefits from global risk-on move

While it has dropped back over the past 24 hours, AUD/USD has been a big winner from the outbreak of risk appetite so far this year and throughout December.

Having rallied to a near three-year high, the price has edged back to short-term trendline support, with a break below $0.77 likely to signal a more substantial near-term correction. A recovery from trendline support targets $0.78 and then on to new multi-year highs.

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

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