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 – GBP/USD, EUR/GBP, AUD/USD, USD/CAD

While the global risk rally begins anew, this has yet to filter through to FX markets, as dollar strength continues to worry investors. 

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.
Pound and dollar
Source: Bloomberg

GBP/USD

The shallow pullback in GBP/USD has meant that losses have been contained, and for now the $1.44 area, and the 100-day simple moving average nearby have acted to constrain further downside.

A push above $1.45 is needed to indicate the pullback has run its course, otherwise we wait to see whether the pair can break below $1.44, which would then open the way to $1.4305, towards the 50-day SMA. 

EUR/GBP

The bounce in this pair appears to have run its course, with the gains petering out around the £0.7900 area. A move lower would need a break below the 50-day SMA at £0.7873, which would then raise the possibility of a move to the late April lows below £0.7750.

Any continuation of the rally must clear the highs of Monday, around £0.7930. 

AUD/USD

With risk appetite recovering around the globe, we may see the Aussie following suit. However, it will need to breach $0.74 in the first instance to suggest that a rally is in the offing.

The risk now is that, like indices on Monday, one final move lower is in the offing, so we wait to see whether the pair can push on above $0.74 or whether it will turn lower and then head towards Monday’s lows at $0.73.

USD/CAD

The rally here has come a long way in a very short space of time, but now it has reached the 50-day SMA (C$1.2987). If it can push on above here then more gains may be in store, with targets in the direction of C$1.3264, the 200-day SMA for USD/CAD.

The bounce has provided little in the way of meaningful pullbacks, so a move back down to the Thursday low around C$1.2832 could provide a fresh entry point for those expecting an extension of the rally into the second half of this week. 

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.