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

A rebound in the US dollar has dragged EUR/USD, GBP/USD and AUD/USD lower. However, with a wider bullish view in play, there is a strong chance we could see those pairs move higher in the near future.

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 retracement likely to bring another move higher

EUR/USD has gone back towards the 76.4% retracement within a recovery phase. This comes within a wider range, pointing towards a likely return to the upper echelons, around $1.2476, at some point.

While the price fell below the $1.2336 swing low overnight, this looks like a three legged retracement before we move higher once again. As such, further upside is expected from here, with a drop below the $1.2299 level needed to negate the bullish outlook.

GBP/USD continues to sell-off amid Carney comments

GBP/USD has seen a week full of sharp declines, as a host of data points have dragged the currency. Yesterday’s dovish comments from Mark Carney added fuel to the fire, with the price falling below the 76.4% support level this morning.

These fundamental factors are certainly having a profound effect upon the price, yet we need to see a break below $1.3965 to undermine the wider uptrend in play. As such, watch for a rebound or break below $1.3965 to signal the next move for the pound.

AUD/USD pullback could provide buying opportunity

AUD/USD has been retracing after breaking to the upside last week. This comes off the back of a wider fall into the 76.4% retracement of the $0.7501-$0.8136 rally.

Now we are seeing the price fall below the 61.8% retracement of the more recent recovery, where long positions look attractive from the zone between the 61.8% and 76.4% retracements. This is because a break below the previous low would necessitate a fall below the wider 76.4% ($0.7651) level. That in itself would be a particularly bearish signal and thus it makes sense to look for longs in this zone, where a break below $0.7642 would be required to negate the bullish outlook.

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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.