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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: GBP/USD, EUR/USD and AUD/USD

European currencies are fighting back after sharp selling yesterday. However, with wider downtrends still in play, such a move is likely to be fleeting.

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GBP/USD turns higher after dramatic sell-off

GBP/USD has started to regain ground lost yesterday after a tumultuous session. With Jacob Rees-Mogg seeking to spearhead a vote of no-confidence, his ability to oust Theresa May will be a key determinant for the pound going forward. If she is replaced by a Brexiteer, we are looking at a very high likeliness of a no-deal Brexit.

However, with May sticking to her guns yesterday, we are starting to see fears ease for now, with the price rising. However, this looks like a retracement, with any near-term upside likely to be met by a bearish downturn before long. As such, any deeper rebound looks like an opportunity to short GBP/USD, with a bearish outlook remaining in play unless we break above $1.3072.

EUR/USD rally likely to be met by sellers

EUR/USD is similarly gaining ground within a downtrend, with the current period of upside likely to be fleeting.

Should we see a break through the $1.15 mark then things would look more bullish, yet until that happens it looks sensible to look for the bears to come back in from a deeper retracement. As such, look out for the $1.1391 or $1.1432 Fibonacci resistance levels to come into play as possible areas to short EUR/USD.

AUD/USD at crucial area of resistance

AUD/USD continues to consolidate around the $0.73-$0.7315 resistance zone, with the pair threatening to break from the downtrend that has dominated 2018.

Keep an eye out for a break through $0.7315 as a bullish signal, with a possibility that we will turn lower remaining relevant unless we break that resistance zone.

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