Skip to content

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

The dollar continues to gain, with EUR/USD and GBP/USD moving sharply lower. Meanwhile, gains for AUD/USD look unlikely to last.

Australian dollar
Source: Bloomberg

EUR/USD heading lower once more

EUR/USD is turning lower yet again, following on from a rebound from the crucial $1.1689 support level yesterday. That level will once again be key to price action and our outlook today, with the ability or inability to break below $1.1689 crucial to understanding whether this is the beginning of a period of weakness for the pair.

As such, watch out for an hourly close below the $1.1689 level for a bearish signal, while a failure to do so, followed by an hourly close above $1.1758 would signal a bullish shift.

GBP/USD turns lower in bearish continuation signal

GBP/USD weakness looks set to continue this morning, after a shallow retracement took us swiftly lower.

An hourly close below $1.2846 would provide a bearish signal, where the shallow depth of the swing high provides us with a close area for stops, above $1.2878. The next key support level comes in at $1.2811.

AUD/USD rallies into Fibonacci retracement

AUD/USD has strengthened overnight, following a fall into a key historical support zone. The price rallied into the 76.4% retracement, and given the dollar strength story we are seeing across the board, coupled with the recent downtrend, it makes sense that we see this pair move lower once again from here.

A bearish outlook remains unless we see a break back up above $0.7877.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

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.

Find articles by writer