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

The turmoil in equity markets has not spread to FX, where moves remain relatively ordered.

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.

EUR/USD sticks to the range

Yesterday’s losses saw the EUR/USD price head towards the bottom end of the range that has prevailed since 25 January.

Dips down to $1.2323 tend to find buyers, while surges to $1.25 have twice now met with selling. The first target on the upside is $1.2735, while below $1.2323, the $1.2165 level comes into play. Range traders will note that the price remains oversold on the four-hour chart, so a bounceback is a distinct possibility.

GBP/USD looks primed for a recovery

Here too the possibility of a bounce for GBP/USD is increasing. Buyers have come in to hold the $1.3943 level, with the potential for a rebound towards $1.43 and $1.4345, the high from late January.

A close below $1.43 creates a lower high that may see selling develop. Below $1.3943, the $1.3836 and then $1.36 levels come into play.

AUD/USD finds buyers at support

The sell-off took the price of AUD/USD to $0.7835, but buyers have appeared to defend the level.

The steady losses of the past week have put a dent in the December rally, but if the price can move back above $0.7950 then further gains are likely. Below $0.7835, the $0.78 level comes into play, and then the rising 200-day simple moving average (SMA), currently at $0.7748. 

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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.