FX levels to watch: EUR/USD and AUD/USD
The EUR/USD pullback looks to be setting it up for another bullish push, while AUD/USD is doing the opposite as the short-term upside looks set to provide a bearish shift.
EUR/USD pullback a likely precursor to bullish rebound
EUR/USD has been drifting lower since rising through the key $1.1442 and $1.1472 swing highs.
Given the break through those levels, it is likely that the current move lower is a retracement before we turn higher once more. As such, a bullish outlook is in play unless we see a fall below $1.1270.
AUD/USD back in retracement mode
AUD/USD has been declining throughout December, negating much of the upside seen in October and November.
Given the recent trend of lower highs and lower lows, this looks likely to provide a short-term reprieve before the sellers come back in again. As such, while further upside looks likely in the short term, a bearish wider picture remains unless the pair rallies through the $0.7203 swing high.
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.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets