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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

Dollar strength continues to be felt, with the sellers in charge in EUR/USD and AUD/USD. 

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EUR/USD holds support zone

EUR/USD remains close to the $1.22 support area, although it is testing the bottom end of that range.

As yesterday, $1.2165 and $1.2092 remain possible support, and we need to see a push above $1.24 for the pair to create a breakout. Given that yesterday’s bounce was so meagre and is already running into selling, it looks like the sellers remain in charge here.

GBP/USD hits bounce territory

GBP/USD has been similar to EUR/USD in that yesterday’s bounce has fizzled out, although the uptrend over the past year is still intact and stochastics on the daily chart are now in oversold territory.

A bounce could materialise from here, but this would need a move back above $1.4036, the 50-day simple moving average (SMA).

No turnaround in sight for AUD/USD

There will be plenty of hand-wringing among bulls as AUD/USD continues to fall below the long-term rising trendline.

Any bounce that fails to move back above this trendline and the $0.7650 area would likely be a selling opportunity, with a push to the $0.75 level in view.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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