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 are all in decline this morning, with the dollar expected to continue gaining ground. With key support levels coming into play, we still have hurdles to overcome for EUR/USD and GBP/USD bears.

EUR/USD falls back from major resistance level

Monday’s EUR/USD rally saw the price attempt and fail to break through the notable $1.1265 swing high. The subsequent pullback brings us into an interesting area, where there is a possibility of another leg higher.

The short-term creation of higher lows remains in place for now, alluding to a potential rebound, yet the wider picture points towards the pair breaking down before long. As such, watch for further downside over the near term, with a drop below $1.1135 required to negate the recent gains and bring about a bearish picture once more.

GBP/USD head and shoulders drives pair lower

GBP/USD is continuing to fall in the wake of a head and shoulders formation, with the break below $1.2967 providing us with a more confident bearish picture.

We are now seeing that decline take the price towards the $1.2865 support level. A break below that level would signal a wider bearish picture coming into play following a largely bullish first quarter (Q1) of 2019. As such, watch out for how we respond to that area of support as a determinant of where we go from here.

AUD/USD triangle break brings return of downtrend

AUD/USD fell below the $0.6962 support level on Monday, bringing with it a renewed bearish outlook.

With that in mind, we are looking for further downside to come, with a break through the $0.702 required to negate this current bearish outlook. However, traders could also look towards the $0.6963 area for stop losses, given the minor swing high set on Tuesday marginally below that level.

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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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