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

Video poster image

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. 

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