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 and AUD/USD

The dollar resurgence has continued, with EUR/USD, GBP/USD and AUD/USD all tumbling to signal potential bearish trend shifts.

EUR/USD back at range support

EUR/USD has dropped into the absolute bottom of its three-month range, with the $1.2154 level providing the critical area to watch out for today.

A break below there would signal a potential wider retracement of the $1.1554-$1.2556 rally. As such, keep an eye out for a reaction at this level, where a break below would signal the beginning of a decline towards Fibonacci support around $1.2055-$1.1936 (50-61.8%). Alternately, this could be the source of another rebound, given the existence of this multi-month range. It all comes down to the $1.2154 level.

GBP/USD drops out of uptrend

GBP/USD has broken out of its uptrend with the drop below $1.3965 this week.

That provides us with a bearish outlook from here on in, where $1.3889 being the next key support level to watch out for. A break below $1.3711 would provide a wider bearish signal, yet for now there is a strong chance we will see further downside come into play over the short term.

AUD/USD drops towards critical breakout level

AUD/USD has been in constant decline over the past week, with the price falling below trendline and Fibonacci support to signal a potential trend change.

The uptrend seen in play over the past two years would be negated with a break below $0.75, and given the below the 76.4% retracement, there is a strong chance this will happen. For the short term, the ability to remain below $0.7621 would point towards a continuation of the downtrend.

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