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 is in the driving seat this morning, with overnight rebounds for EUR/USD and AUD/USD in particular being sold into.

Video poster image

EUR/USD tumbles following deep retracement

EUR/USD is selling off after an overnight rally which took us into the 76.4% retracement.

This deep retracement allows for better risk-to-reward trade entries. We are now seeing the pair push back towards yesterday’s lows, with the trend looking set to resume once more. Therefore look for a break below $1.1530 as a trend continuation signal, where rebounds are there to be sold into. A break above $1.1627 is required to negate this bearish outlook.

GBP/USD turning towards key support level once more

GBP/USD is breaking lower from trendline resistance this morning, following on from a period of downside since Thursday.

There is a strong possibility that we are on the cusp of a bearish breakdown for the pair, and traders need to keep a close eye out for a potential break below $1.2800 support. Should such a break occur, then this would point towards the pair moving into a more reliable downtrend for the medium term; negating the gains seen throughout the past three weeks.

AUD/USD rebound fails to hold

AUD/USD managed to rebound overnight, following an impressive set of gross domestic product (GDP) numbers.

However, the trend is clearly defined here, and we immediately saw the pair turn lower from the 76.4% retracement. With the price breaking below the $0.7157 level, this would have been a successful selling opportunity at the Fibonacci. From here, we are likely to continue downwards, with a bearish short-term outlook remaining in play as long as we do not break above the overnight high of $0.7127.

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