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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

There are mixed messages across a number of FX pairs, with a Brexit breakthrough providing a bullish signal for GBP/USD despite a more bearish outlook for AUD/USD.

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EUR/USD ascent slows as we head into key resistance

EUR/USD has been trying to rally through the Tuesday peak of $1.1733, with the pair pushing towards the crucial bullish breakout level of $1.1746.

So far, however, we have failed to break either of those levels, which points towards a potential period of weakness. A break below $1.1651 would signal an impending bearish phase, with a bullish short-term trend remaining in play until then.

GBP/USD breaks through resistance after Brexit breakthrough

GBP/USD managed to rally through trendline and horizontal resistance ($1.2936) this week, with an apparent breakthrough in Brexit negotiations leading to gains for the pair. With the ascent slowing, there is a chance we could soon see some form of retracement.

However, until we break below $1.2799, there is a good chance that any such drop is a retracement rather than bearish reversal. With Brexit negotiators, Dominic Raab and Michel Barnier, meeting tomorrow, GBP/USD is likely to be heavily impacted further as the week goes on.

AUD/USD continues to weaken following breakdown

AUD/USD has been moving lower following a fall below the $0.7307 swing low earlier in the week. The pair has a clearly defined downtrend, which should remain unless we see a rally through the $0.7362 mark.

On the flip side, with higher lows and lower highs in play over the past fortnight, a drop below $0.7237 would provide greater confidence of another bearish breakdown for the pair.

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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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