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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, AUD/USD

Risk appetite has continued to recover, boosting the euro, sterling and the Aussie. 

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EUR/USD finds strength to rally

EUR/USD pushed down last week towards the $1.22 level that has marked the limit of progress to the downside for the time being.

Buyers have pushed the price back towards the $1.2340 area that stifled progress a week ago. A daily close above here suggests a move back towards $1.2450 and higher could be in play. A failure to maintain upward progress brings a retest of $1.22 into view, and below this $1.2165 and $1.2092.

GBP/USD pushes higher

GBP/USD's defence of the 50-day simple moving average (SMA) over the past two weeks appears to have been resolved in favour of the buyers.

The late March peak around $1.4250, and then the January high of $1.4345 come into play if the pair sees further appreciation. For now, intraday dips will likely find buyers unless we see a close back below $1.3950.

AUD/USD rallies off firm base

The recovery above $0.77 bodes well for AUD/USD, particularly if global risk appetite continues to pick up.

The pair has been declining since mid-January, so the rally may stumble close to $0.79, but for now it looks like momentum lies with the buyers. A close below $0.7650 is needed to reverse the bullish outlook.

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