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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 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 ensure that you fully understand the risks involved.

FX levels to watch – EUR/USD, GBP/USD, AUD/USD

A resurgent dollar has seen downtrends in EUR/USD, GBP/USD and AUD/USD reassert themselves. 

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EUR/USD reaches new lower high

Yesterday’s European Central Bank (ECB) meeting provided an excuse for further selling, creating a new lower high for the EUR/USD.

This followed on from the turn lower in mid-February. The next target is $1.2165, with the November rising trendline in sight just below this. The next area to watch for support is $1.2093. While some rebound is to be expected, any bounce that fails to move above $1.2450 is another possible selling opportunity.

GBP/USD continues downtrend from January

Here too this week has seen another lower high created for GBP/USD, continuing the downtrend from late January.

The first levels to watch are $1.37 and then $1.3659, and $1.3915 and then $1.3943 are near-term areas of potential resistance. A break above $1.40 is needed to reverse the bearish view from here.

AUD/USD creates new lower high

The bounce for AUD/USD from the lows of last week has run out of steam around the $0.7836 level.

While the price has moved higher overnight, a new lower high has been created. Further declines will target $0.7748 and then $0.7694. It would need a break above $0.7850 to reverse the bearish outlook, with $0.79 then coming into play.

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