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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

The dollar is under pressure, with EUR/USD, GBP/USD and AUD/USD all moving higher. Is this the beginning of a wider bullish move for the pairs?

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EUR/USD rallies into crucial resistance level

EUR/USD has rallied into the $1.1721-$1.1727 resistance zone this morning, following a week of upside for the pair. This is a major region of resistance, which will determine the bias for the short term.

With the top of a rising wedge also joining this confluence of resistance, there is reason to believe that we could be looking at the beginning of a sell-off from here. As such, a bullish picture would only come with a rally and close above $1.1727. Until then, there is a chance we could see some weakness come into play.

Is GBP/USD a retracement of bottom?

GBP/USD has also been gaining ground, with the price breaking past the 61.8% area and testing levels above the 76.4% ($1.3252) area.

The $1.3315 level is going to be key here for the pair, with the wider bearish trend providing a distinct possibility that we will see a move lower from here. However, should we see the price break above the $1.3315 level, we would be provided with a more bullish short-term outlook.

AUD/USD showing signs of bullish resurgence

AUD/USD has rallied back into the $0.7409 resistance level, following a rally above that level on Wednesday.

We are clearly seeing signs of strength coming into play, yet we want to see a break above the $0.7444 level to provide greater confidence of a bullish breakout. Until then, watch for a potential respect of the 76.4% retracement at $0.7415.

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