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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 and AUD/USD

Recent gains for EUR/USD, GBP/USD and AUD/USD are coming under pressure, with initial signals of a potential bearish shift coming into play.

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EUR/USD weakening from Fibonacci resistance

EUR/USD is drifting lower in the wake of a rally into the 76.4% retracement at $1.1771. Following a rally above $1.1721-$1.1727, there is a growing story of a potential bullish break, with a rise above $1.1852 providing greater confidence of such a move.

With the initial respect of the Fibonacci retracement, there is a chance of a weaker picture coming into play for the near term should we fall below $1.1690.

Will the GBP/USD rally run out of steam?

GBP/USD is gaining ground this morning, coming off the back of a move into the 61.8% retracement yesterday. While we have clearly gained ground over the past fortnight, the fall below $1.3204 on Monday raises questions over this current rally.

With that in mind, there is a possibility we could look for shorts around the 61.8% or 76.4% retracements ($1.3297-$1.3322). A break above $1.3363 would negate that bearish possibility.

Will AUD/USD trendline break signal bearish shift?

AUD/USD has dropped into a 61.8% Fibonacci support level overnight, coming off the back of a trendline break. That trendline break could provide a warning sign that we are set for a reversal lower following the recent period of strength.

A break below $0.7361 would provide confirmation of that bearish shift. Until then, there is a chance we could see a rebound from Fibonacci support.

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