FX levels to watch: EUR/USD and AUD/USD
EUR/USD and AUD/USD look set for further downside, with the dollar coming into strength despite the US government shutdown.
EUR/USD rebound provides selling opportunity
EUR/USD as managed to rebound substantially following a sharp deterioration yesterday. That sell-off follows on from the inability to continue creating higher lows, after Friday’s drop below $1.1364. Given this recent trend of lower highs and lower lows, the rebound seen overnight looks like a good selling opportunity.
A break above $1.1414 would provide a warning signal that such a bearish move might not come to fruition, with a move above $1.1439 signalling the end of this recent trend.
AUD/USD waiting for next breakdown
AUD/USD has been trading within a relatively flat range over the past two trading days, in what looks like a very similar pattern to those seen in recent weeks.
On prior occasions these sideways consolidation patterns provide a precursor to another downside sell-off. Thus, the expectation is that we will soon see another sell-off, with an hourly close below $0.7032 providing confirmation that the breakout is occurring. Until then, there is a chance we will rebound from here to continue the consolidation.
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
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
