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

EUR/USD, GBP/USD and AUD/USD are all starting to find strength following recent declines, with key support coming into play once more. 

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 tumbles back into support

EUR/USD has sold off into the $1.1822 support level once again, with the dollar coming back into strength. This is certainly a crucial area of support to watch out for as a source of a possible bounce.

Below that, there is also the 76.4% retracement to watch out for. The wider perspective portrays a picture of a market which does have the potential to reverse the uptrend that has been in place since the beginning of 2017. However, until we see a break below $1.1554, there is also a chance we will see EUR/USD turn higher once more to continue that long-term trend. The reaction to the $1.1790-$1.1822 support zone will be very telling in answering the question of where we go from here.

GBP/USD broadening formation remains in play

GBP/USD continues to trade within a broadening formation, with the price finding support on a descending trendline yesterday.

This points towards short-term upside, with the consolidation phase expected to remain in play for now. With that in mind, watch for short-term upside into $1.3607 resistance to continue the recent sideways price action. A break through trendline support or resistance would provide a breakout signal, but given the expanding nature of this pattern, there is a chance that these lines will become less relevant over time.

AUD/USD turning higher from Fibonacci support

AUD/USD is turning higher from the 76.4% retracement today, following on from a fleeting break above $0.7561.

That shift away from the creation of lower highs and lower lows points towards a potential reversal for the pair, and today’s rebound from Fibonacci highlights that we could see a more bullish phase come into play. As such, watch for a possible push upwards from here, where a break back below $0.7449 would bring about a less 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.