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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. 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 CFDs with this provider. You should consider whether you understand how 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

Dollar strength has dragged EUR/USD, GBP/USD and AUD/USD lower, with crucial support levels in view. The ability to break below those levels would be key in determining the direction from here on in.

anonymous

Publication date : 2018-04-23T09:51:30+0100

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EUR/USD falls into crucial support zone

EUR/USD has been breaking lower since rallying into the 76.4% retracement, with the sell-off bringing a move back towards an important support zone $1.2239 and $1.2205.

With price action over recent months trading within a period of consolidation, there is a good chance we will see the price turn higher soon enough to maintain that trend. With that in mind, while we could see further short-term downside, it may make sense to await the bullish reversal rather than expecting a strong extension to the downside.

EUR/USD price chart

EUR/USD price chart

EUR/USD price chart

GBP/USD falling towards critical support

GBP/USD has been selling off sharply over the past week, largely thanks to a whole host of economic data out of the UK recently.

We have seen the price fall back towards the crucial $1.3965 support level, and how the pair reacts to this will provide us with guidance for the forthcoming period. As such, watch for the response to that level to provide the bullish or bearish signal from here.

GBP/USD price chart

GBP/USD price chart

GBP/USD price chart

AUD/USD at key support

AUD/USD has dropped back into the $0.7642 support level this morning, with the pair failing to build on the rally from the 76.4% retracement at $0.7651 earlier in the month. A break back below the $0.7642 support level would provide a wider bearish signal.

However, until then there is a chance of a rebound from this support zone, considering the importance of a break below that level. In the meantime, we have an inside trendline to contend with too, so look for the ability or inability to break below $0.7642 as a guide of where we go from here.

AUD/USD price chart

AUD/USD price chart

AUD/USD price chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

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