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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 and AUD/USD

The dollar rally has been taking a breather, with EUR/USD, GBP/USD and AUD/USD consolidating. Are we set for another leg lower before long?

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EUR/USD consolidating at Fibonacci support

EUR/USD is gradually regaining ground above the 61.8% Fibonacci retracement, with the price slowing the decline that has been so evident over the past fortnight.

To the upside, trendline resistance has been respected thus far, and should be watched closely as a near-term resistance level of note. Ultimately, a more bullish picture would come with a break through $1.2031 resistance. As such, watch for a break below $1.1936 or above $1.2031 as a guide on where the pair goes next.

GBP/USD consolidation likely to break lower

GBP/USD is trading largely sideways, with lower highs providing us with a descending triangle formation.

With a clear downtrend behind us, there is a strong chance we will soon turn lower once more. To the downside watch out for a break below $1.3537 to continue the downtrend. Otherwise, watch for the $1.3629 swing high as a signal that a more bullish short-term phase is coming into play.

AUD/USD weakening from Fibonacci resistance

AUD/USD has been gaining ground throughout the week, with the price breaking through trendline resistance.

However, with the price starting to weaken from the 76.4% retracement, there is a chance we will see the wider bearish trend come back into play soon enough. The key to that would be a break below $0.7500 to negate the recent gains. Alternately, a break above $0.7589 would bring about a more bullish outlook for the pair. 

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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