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 and AUD/USD

Short-term dollar strength is dragging EUR/USD, GBP/USD and AUD/USD lower. However, is this a precursor to an impending move higher?

AUD
Source: Bloomberg

EUR/USD held up at SMA support

EUR/USD has been turning lower from trendline support over the past 24 hours, with the pair seeking to continue the pullback following the late-August rebound. This move lower is likely to continue, yet with the 200-day simple moving average (SMA) on the four-hour chart below, we have a key hurdle to overcome.

Given the recent respect of this moving average, it makes sense to await a break and closed candle below that level as a signal of further downside. Conversely, a break above $1.1650 would point towards a resurgence for the pair.

GBP/USD seeks to maintain bullish phase

GBP/USD has been regaining ground over the past week, fueled for the most part by shifts in perception over Brexit talks. We have seen the pair drift lower since yesterday’s peak.

However, with this weakness comes expectations of another push higher before long. So far, we have seen a 61.8% retracement, and any further short-term weakness would point towards the 76.4% retracement as the next support level to watch. We would need a break below $1.2897 to negate this short-term uptrend.

AUD/USD consolidation unlikely to last

AUD/USD has been consolidating this week, following on from a sharp drop towards the end of last week. Despite the fact that we are trading sideways, there is a good chance we will see another leg lower before long.

That being said, given the size of that prior sell-off, there is still a potential for a short-term retracement. As such, look for a break below yesterday’s low as a signal of another leg lower. Otherwise, a break through trendline resistance would point towards a potential short-term rebound.

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