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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 appears to be in control for EUR/USD and AUD/USD over recent days, while the pound has enjoyed a sharp surge at the hands of a hawkish Bank of England.

Pound and dollar
Source: Bloomberg

EUR/USD rebounds, yet will it last?

EUR/USD has regained ground overnight, following a sharp fall below the 76.4% retracement. That move has heightened the chance that we are seeing a bearish reversal.

For that bearish shift to be confirmed, we would need a break below $1.1823, while a move back above $1.1995 would raise the likeliness of a bullish continuation.

GBP/USD breaks to new 14-month high

GBP/USD rallied sharply off the back of yesterday’s Bank of England (BoE) meeting, pushing the price into a crucial resistance level. The ability to break above the $1.3445 resistance level will be key to today’s outlook.

With that September 2016 high marking a huge resistance level, watch out for how the pair acts at this level for a clue as to how it will trade going forward. 

AUD/USD near key trendline resistance

AUD/USD has been closely respecting a key descending trendline over the past 24 hours, with the reaction to this line key to today’s direction. Clearly the recent trend is to the downside, which points towards a potential move lower from here.

However, should we see an hourly close above $0.8016, then it would point towards a bullish resurgence for the pair. 

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.

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