Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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

EUR/USD and GBP/USD are looking somewhat unconvincing, with Italian and Brexit fears driving slightly mixed market messages. Meanwhile, AUD/USD looks set to fall amid a recent rising wedge pattern.

IG Analyst

Publication date : 2018-10-17T09:41:33+0100

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EUR/USD consolidates after recent rebound

EUR/USD has been pushing higher off the back of a two-week period of losses.

We are now seemingly in a period of consolidation, where a break through support ($1.1544) or resistance ($1.1609) would signal where we go from here. A break to the downside would look like a potential retracement before we push higher once more. Meanwhile, a rally through resistance may point towards a move into the $1.17 region.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD turning lower after failed attempt to break resistance

GBP/USD has failed to rally through the $1.3258 swing high, raising doubts about the longevity of this rebound.

The direction for this pair will be determined by a break through $1.3258 or $1.3098. A drop below that $1.3098 low points towards a potential wider breakdown, with Fibonacci support the first point of call. To the upside, a rally through $1.3258 would signal a continuation of the wider bullish trend in place since the September low.

GBP/USD chart

GBP/USD chart

GBP/USD chart

AUD/USD upside unlikely to last

AUD/USD has been gaining ground over the past week, with a rising wedge coming into play.

That is a bearish pattern, pointing towards a possible breakdown before long. Given the wider downtrend in play, such a breakdown would be consistent with the primary long-term trend. Thus, watch for a break below the first swing low to signal an impending sell-off. That level is currently $0.7111. Until that happens, we could continue to drift higher.

AUD/USD chart

AUD/USD chart

AUD/USD chart

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