Skip to content

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 is losing ground once more after Wednesday’s FOMC boost, with EUR/USD, GBP/USD and AUD/USD all expected to move higher.

Australian dollars
Source: Bloomberg

EUR/USD continues to regain lost ground

EUR/USD has been regaining ground since Wednesday’s sell-off fueled by the Federal Reserve (Fed). Crucially, we did not see a break below the $1.1837 mark, thus lessening the chances of a widespread sell-off.

As we move higher, the key hurdle to overcome is $1.2034, which would signal a continuation of the uptrend over recent months. Watch out for near-term resistance at $1.1995.

GBP/USD manages to remain above key support level

GBP/USD has been moving higher within a short-term range, with the Federal Open Market Committee (FOMC) decision also bringing downside for this pair. Importantly however, we saw the market respect the September 2016 high of $1.3445, which was a major breakout level on the way up last week.

As such, the breakout from this pattern is likely to come to the upside, with a break below $1.3445 negating that view. That being said, until we see that breakout, there is still a chance we could continue to consolidate.

AUD/USD looks to regain ground after sharp sell-off

AUD/USD is also regaining ground this morning, following a sharp sell-off in recent days. The move back through $0.7945 provides a short-term double bottom, which is likely to bring about further upside.

Given the size of the down move, there is a good chance we could see a significant move higher for AUD/USD here, with a break below the overnight lows of $0.7908 required to negate this bullish short-term view.

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.

Find articles by writer