Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

FX levels to watch – EUR/USD, GBP/USD and AUD/USD

The dollar has been strengthening throughout the second half of the week, with the combined effect of the FOMC and ECB seeing EUR/USD, GBP/USD and AUD/USD selling off sharply.

Video poster image

ECB sends EUR/USD tumbling

EUR/USD has broken lower, following an attempt to push upwards throughout the first week of the month. Even so, this looked like it would have been seen as a retracement before another sell-off.

However, with the European Central Bank (ECB) meeting helping drive EUR/USD lower, there is a good chance that we will not see that protracted rebound come into play. That being said, we would need to see a break below $1.1510 to further this bearish case, and until that happens there is still a chance of a rebound over the short term.

GBP/USD trading near crucial support level

GBP/USD has also seen significant downside come into play towards the back end of the week, with the pair faltering in the wake of the ECB meeting.

This has broken the pair back towards the $1.3204 support level, which will ultimately dictate the state of play for the day. An hourly close below that level would signify a likely further push lower. However, without that break, there is a chance we could start to turn higher as we close out the week.

AUD/USD looks set for protracted period of downside

AUD/USD sold off sharply yesterday, with the pair falling below $0.7475 and out of the uptrend that has been in place since early May.

The wider trend pointed towards further downside coming into play soon enough, and this appears to be the moment that we see such a shift. For the near-term, there is always a risk of a rebound after such an extended sell-off. However, such a bounce would be a selling opportunity, with a bearish outlook in play unless we see a rally through the $0.7624 swing high.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about