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 dollar has dominated this week, with increased rate hike expectation driving the greenback higher against most currencies.

IG Analyst

Publication date : 2017-03-03T09:33:42+0000

Euro and US dollar notes

Source: Bloomberg

EUR/USD bounces from key support level

Yesterday’s EUR/USD weakness came to an end after the pair hit the February low of $1.0494, with price gaining over the short-term ever since. The upside we have seen this morning has failed to break through $1.0528, which represents a key level in determining whether we could see further short-term gains.

The next move will be dictated by a break below $1.0494, or above $1.0528. A break through $1.0528 would point towards a rally into the $1.0550 region, whereas an hourly close below $1.0494 would look to spark another leg lower for the pair. In either case, a bearish medium-term outlook remains the dominant force.

EUR/USD price chart

EUR/USD price chart

EUR/USD price chart

GBP/USD seeking to spark next leg lower

GBP/USD dropped into the $1.2253 support level (mid-January low), with price subsequently consolidating above that level. With price attempting to break below that support zone, a clear hourly close below here would provide a bearish continuation signal for the pair.

The next levels to watch out for are the 70% ($1.2204) and 76.4% ($1.2158) Fibonacci retracements. Alternately, an hourly close above $1.2308 would provide a warning sign that we could be due a bounce for the pair.

GBP/USD price chart

GBP/USD price chart

GBP/USD price chart

AUD/USD breaks into downtrend

AUD/USD has reversed in style, with the break below $0.7649 providing us with a great sell signal. After yesterday’s sharp sell-off, it is simply a case of selling the retracements in the expectation of further downside.

An hourly close below $0.7543 would point towards the next leg lower coming into play. Alternately, an hourly close above $0.7577 would look like sparking a retracement of yesterday’s losses. In either case, further losses seem likely in the medium-term.

AUD/USD price chart

AUD/USD price chart

AUD/USD price chart

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