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

EUR/USD, GBP/USD and AUD/USD have all managed to rally towards notable resistance levels. Could we be due a shift lower for these currencies in the short term?

EUR/USD expected to drift lower amid consolidation

EUR/USD has been trading within a descending channel formation over the past week, with the price looking like it is in a drawn out retracement of the $1.1275-$1.1371 rally.

This points towards a likely break higher before long, yet with the price currently forming a bearish engulfing pattern around trendline resistance, there is a good chance we could see short-term downside. Interestingly, the break through Friday’s high of $1.1356 points towards the bullish surge coming in play before long, and thus any short-term downside could be a precursor to a bullish surge out of this consolidation.

GBP/USD back into resistance zone

GBP/USD has managed to rally into a zone of resistance which capped last week’s price action. This is a key hurdle which needs to be overcome to bring about the next leg higher for the pair.

Thus, the ability or inability to break through the $1.3109 resistance level is going to be key in determining whether this market is going to break higher or fall back once more.

AUD/USD rallies after Trump comments

AUD/USD enjoyed a bullish end to the week, and with the US President Donald Trump removing the Friday 1 March deadline for the imposition of heightened tariffs on the Chinese, we are seeing a positive start to this new week.

However, questions remain when looking at the chart, with the breakdown below $0.7103 providing a signal that we could be due another leg lower. That break portrays the current rally as a retracement, with a break through $0.7207 required to negate that bearish view. As such, watch for a potential bearish turn, with the $0.7174 Fibonacci resistance level of particular importance. A break through that level starts to weaken the bearish story, whereas respect of it points towards a possible impending period of weakness.

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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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