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.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

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

The euro is looking to capitalise on gains from yesterday, while the Aussie finds itself at a crucial point.

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.
Australian dollar
Source: Bloomberg

EUR/USD moving higher

EUR/USD has recovered from the lows of last week, moving briefly above Friday’s high at $1.1987. However, now it needs to follow through and post a close above $1.20, something that has eluded it since 11 September.

A turn lower from $1.20 creates a lower high and raises the possibility of a move back towards $1.1850. At this point the buyers need to step in to avoid losing the post-March rising trendline.

EUR/USD price chart

EUR/USD price chart

GBP/USD hoping to push higher

Mark Carney’s speech yesterday provided little in the way of fresh bullish catalysts, leaving GBP/USD rather directionless. The pair has recovered from the lows, with a turn higher targeting last week’s peak above $1.36 at $1.3630.

Even a sustained pullback towards $1.3250 is unlikely to put a dent in the upward trend. A reversal likely requires a move below $1.32. 

AUD/USD dropping below trendline

AUD/USD had enjoyed a rising trendline from the beginning of June, until falling below yesterday. While the price has bounced off the $0.7940 level, it now needs to move back above $0.80 to put itself back above the trendline.

Since the pair has faltered over the past week at $0.8040, it needs a move back above this level to really show that the buyers are back in control. A longer-term move lower would, in the first instance, target $0.7877, the late August low. 

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.