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

With a bullish outlook for EUR/USD and AUD/USD, will we see GBP/USD confound the bearish dollar picture after last week’s election result?

IG Analyst

Publication date : 2017-06-12T09:41:51+0100

GBP notes

Source: Bloomberg

EUR/USD weakness could be short-lived

EUR/USD has been moving lower over recent days of trading, coming off the back of a break through the key $1.1268 swing high. That break means that we remain within an uptrend and as such this short-term weakness is likely to be a retracement rather than a reversal.

So far we have seen the price retrace to the 61.8% level, yet we could quite easily move lower once more. Another move into the $1.1151- $1.1167 support zone (76.4-61.8%) would provide a good buying opportunity. As long as the price doesn’t break below $1.1109, a bullish outlook remains in play.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD expected to break lower once more

GBP/USD sold off sharply on Friday following the unexpected hung parliament result. While the price stabilised since, we have seen a symmetrical triangle formation in play with the failure to break through $1.2780. Should that occur, then we could be looking at a more bullish picture.

However, the flip side of that is a break and hourly close below $1.2706, which would provide us with a bearish continuation signal. Considering the move into here, another drop seems likely. Still, for safety, keep an eye out for a break through either support at $1.2706 or resistance at $1.2780.

GBP/USD chart

GBP/USD chart

GBP/USD chart

AUD/USD triangle points towards further upside

AUD/USD is trading within a descending triangle formation, following a strong start to the month. This pattern is expected to resolve in a break higher, with any move back into the $0.7525 region looking like a great buying opportunity.

As long as the price remains above $0.7500, a bullish outlook remains in play.

AUD/USD chart

AUD/USD chart

AUD/USD chart

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