CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

FX levels to watch: EUR/USD, GBP/USD and AUD/USD

The dollar has been gaining ground, with EUR/USD and GBP/USD pulling back. However, with intraday uptrends in play and AUD/USD breaking higher, are we set for another leg higher?

EUR/USD pullback brings buying opportunity

EUR/USD dropped sharply on Thursday, with the uptrend coming into question as a result.

However, with the fact that we continue to create higher highs and lows, this could be a good buying opportunity unless we break below the $1.1406 swing low.

GBP/USD shows signs of potential bearish shift

GBP/USD has been declining throughout the week, with the rebound on Thursday failing to break through the $1.3213 peak. The current move lower threatens to derail the upward trend, with a break below $1.3054 required to bring about an intraday bearish outlook.

As such, watch for whether that level breaks or not as a guide on whether to begin looking at things in a more bearish manner or not. Until then, the bullish trend remains intact.

AUD/USD reaches key SMA resistance

AUD/USD has rallied into the 200-day simple moving average (SMA) resistance, with the pair turning lower since. That level is marginally above the 76.4% Fibonacci level, thus representing a deep retracement of the $0.7393-$0.6833 sell-off. A break through that $0.7393 level would signal a wider bullish reversal. However, there is still a risk of this market turning around before long.

For now, a further decline does seem likely, yet we need to see a swing low taken out before a more bearish wider picture can come into play. A rally through $0.7295 would signal that the pair is likely to keep on moving upwards towards $0.7393.

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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