CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

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

US dollar strength threatens to sweep all before it, as EUR/USD, GBP/USD and AUD/USD all look likely to fall sharply as the week progresses.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
GBP/USD forex pair
Source: Bloomberg

EUR/USD party seems to be over
EUR/USD has had things all its own way over recent weeks, rallying heavily with few pullbacks. However, having run into a major trendline resistance, the pair has turned lower in a convincing manner.

Yesterday saw the pair mainly consolidating, yet further downside seems likely, with a closed hourly candle below $1.1465 representing the bearish signal to bring the $1.1396 support level into view. The $1.1465 level is crucial, representing the April peak.

This bearish view would come into question with a rally back above yesterday’s high of $1.1530.

GBP/USD selling from Fibonacci resistance
GBP/USD has rallied into the 61.8% retracement overnight, with the pair subsequently selling off this morning. We appear to be moving into a more bullish period for the dollar and as such, the recent strength of GBP/USD appears to be unwinding.

With that in mind, another move lower appears the move likely event today. A bearish view is held unless we see an hourly close back above $1.4572.

Support levels of note are $1.4461, $1.4442 and $1.4400. Resistance levels of note are $1.4530, $1.4546 and $1.4572.

AUD/USD beginning downtrend
The AUD/USD pair has fulfilled a number of requirements in recent weeks to validate the idea that we are no longer within an uptrend. The close below $0.7477 is just the latest.

We have seen the pair rallying overnight after strong Australian trade data, yet this is already starting to unwind. A bearish view is in play here, with another leg lower likely to occur before long.

A closed hourly candle below $0.7450 would provide a strong signal this is going to occur. In which case, support levels of $0.7439 and $0.7382 will come into view.

Alternately, a closed hourly candle above $0.7517 would indicate a deeper retracement of the Tuesday sell-off, with $0.7549 the next key resistance level.

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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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