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

Dollar strength is on the up again, providing a bearish outlook for EUR/USD, while the bounce in the pound appears to have run its course.

AUD
Source: Bloomberg

EUR/USD tiptoes lower

EUR/USD is exploring the area below $1.16, as it creates a new low for the month. The first downside target would be $1.1489.

Rallies have been firmly sold since mid-September, so any retracement that stays below $1.17 would be another chance for sellers. Even a push back towards $1.18 would still mark a lower high in the current downtrend off the September high. 

GBP/USD rally fizzles out

The GBP/USD rally from last week’s lows has stalled for now, running to $1.3180 and creating a new lower high.

If the move gathers strength, $1.3050 is the target, with a move below here opening the way to $1.28. A turn higher would perhaps signal that bulls are regaining control, with the $1.3268 and then $1.3341 areas potential zones of resistance.

AUD/USD turns down again

The bears look to be in control of AUD/USD again, sending the price back towards the bottom end of the zone around $0.7640.

Below here the $0.75 area comes into play. Rallies have been sold over the past week, so a break above $0.7750 is needed to reverse the current bearish outlook. 

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