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 is losing ground after the Republicans lost control of the House of Representatives. With EUR/USD, GBP/USD and AUD/USD all pushing into deeper retracement levels, could this be the beginning of a wider bullish shift?

IG Analyst

Publication date : 2018-11-07T10:05:36+0000

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EUR/USD pushing upwards amid dollar weakness

EUR/USD has been pushing higher, in a continuation of the strength seen throughout November thus far.

With the price rising through the 50% retracement, there is a strong chance we will see the pair continue to gain ground over the near term. A break through the $1.1622 mark would be required to bring about a wider bullish outlook for the pair. Until then, watch for a move into the deeper Fibonacci retracement area of $1.15 and potentially $1.1546.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD pushes past Fibonacci resistance

GBP/USD has managed to regain a significant amount of ground, with the combination of a more hawkish Bank of England (BoE) outlook coupled with a post-midterm election decline in the dollar helping push the pair past the 76.4% retracement. That raises the chance of a wider bullish breakout above $1.3258.

However, until we see that, there is still a chance of the pair turning lower to continue the wider creation of lower lows in play.

GBP/USD chart

GBP/USD chart

GBP/USD chart

AUD/USD continues to regain ground

AUD/USD has turned higher once more, despite the initial respect of the 76.4% Fibonacci resistance. The long-term downtrend remains intact unless we see a break through the $0.7315 swing high.

However, with the price having broken through both trendline and now Fibonacci resistance, we are increasingly seeing a wider turnaround as a possibility. With that in mind, we are in a position where there are both bullish and bearish factors in play. However, a break through $0.7315 would bring about a clearer and bullish picture for the pair.

AUD/USD chart

AUD/USD chart

AUD/USD chart

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