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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 euro continues to stumble, but there seems no stopping for AUD/USD.

Australian dollar
Source: Bloomberg

EUR/USD facing a crucial day

EUR/USD was knocked back yesterday, and today will be crucial, in that the pair needs to close above $1.1445 to maintain short-term upward momentum.

A close below $1.1366 is needed to signify that a near-term top is at hand. Upside targets lie at $1.1490 and then $1.1584.

GBP/USD about to test $1.3084?

GBP/USD’s rally off the 50-day simple moving average (SMA) at $1.2869 suggests we may be about to see another test of the $1.3084 level.

A breakout above here means that a longer-term move to $1.3427 could be in play. Bears will need to push the price below $1.2825, and then take out the 100-day SMA, currently at $1.2692.

AUD/USD rallying on

There seems little to stop this rally on AUD/USD, as it breaches June highs and charges on to the March peak at $0.7748.

A close back below $0.7712, the June high, could be a worrying development, but for the time being the bulls have the upper hand. Above the March highs the next targets are $0.7778 and then $0.7835.

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.

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