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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, GPB/USD, AUD/USD

Sterling traders await the UK’s CPI figures this morning as they look for clues on rate hikes, while the Aussie is looking to rebound from overnight losses.

Australian dollar
Source: Bloomberg

EUR/USD hopes for a rally

Having faltered last week below $1.19, EUR/USD is under further pressure. Additional downside from current levels would head towards the $1.1662 low from August, which remains the vital level to watch.

A drop through here would create a new lower low on the daily chart. A recovery above $1.19 is needed to put a more bullish spin on things.

EUR/USD chart

GBP/USD waits on inflation data

As GBP/USD looks to maintain its momentum from the October lows, today’s consumer price index (CPI) reading will be a make-or-break moment for cable.

A close above last week’s high of $1.3338 would open the way to $1.3427, and then $1.36. Downside targets lie at $1.3153, and then $1.3050.

GBP/USD chart

AUD/USD bounces from overnight lows

A pullback for AUD/USD from the Friday highs has provided a possible buying opportunity, as the price finds support at $0.7835. From here the $0.79 area comes into play, and then the 50-day simple moving average (SMA) at $0.7910.

Above this, the highs of September at the $0.81 area are the next destination. But if gains falter and the price drops, $0.7835, then $0.7807 and $0.7748 are the areas to watch for possible support. 

AUD/USD chart

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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