Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.

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

A resurgent dollar has seen downtrends in EUR/USD, GBP/USD and AUD/USD reassert themselves. 

EUR/USD reaches new lower high

Yesterday’s European Central Bank (ECB) meeting provided an excuse for further selling, creating a new lower high for the EUR/USD.

This followed on from the turn lower in mid-February. The next target is $1.2165, with the November rising trendline in sight just below this. The next area to watch for support is $1.2093. While some rebound is to be expected, any bounce that fails to move above $1.2450 is another possible selling opportunity.

GBP/USD continues downtrend from January

Here too this week has seen another lower high created for GBP/USD, continuing the downtrend from late January.

The first levels to watch are $1.37 and then $1.3659, and $1.3915 and then $1.3943 are near-term areas of potential resistance. A break above $1.40 is needed to reverse the bearish view from here.

AUD/USD creates new lower high

The bounce for AUD/USD from the lows of last week has run out of steam around the $0.7836 level.

While the price has moved higher overnight, a new lower high has been created. Further declines will target $0.7748 and then $0.7694. It would need a break above $0.7850 to reverse the bearish outlook, with $0.79 then coming into play.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by writer