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 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. 70% 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, AUD/USD

Dollar weakness looks set to dominate, with GBP/USD and AUD/USD expected to join EUR/USD in gaining ground.

anonymous

Publication date : 2017-07-21T09:18:03+0100

Pound and dollar

Source: Bloomberg

EUR/USD heading higher, yet resistance awaits

EUR/USD is enjoying a blockbuster week, with pullbacks being bought into.

However, while the short-term picture remains bullish, it is worth noting that we have a massive resistance level up ahead in the form of the August 2015 high at $1.1715. A break through there would provide a new 30-month high, alongside a strong chance of a bullish range breakout on the long-term picture. A move below $1.1616 would negate the short-term bullish outlook.

EUR/USD price chart

EUR/USD price chart

EUR/USD price chart

GBP/USD likely to turn higher once more

GBP/USD has been pulling back over recent days, as it trades within a rising wedge pattern. So far we have seen the market turn higher from the 61.8%, which highlights the potential for a rally from here.

Another move lower would mean a likely move into the confluence of the 61.8% Fibonacci and trendline support. As such, it is likely we will soon turn higher in a continuation of the recent uptrend. We would need a break back below $1.2811 to negate this bullish outlook.

GBP/USD price chart

GBP/USD price chart

GBPUSD-210717_LG

AUD/USD pullback could provide bullish opportunity

AUD/USD has been pulling back over the past 24 hours, coming off the back of the incredible rally earlier in the week. That took us through a crucial resistance zone, creating a new two-year high.

The top of that previous resistance zone is $0.7835, which is the 2016 high. With that in mind, the current pullback could provide a strong buy signal should we retrace further. Interestingly the 76.4% retracement comes in almost exactly at the $0.7835 support level. As such, a bullish outlook is in play unless we break below $0.7786.

AUD/USD price chart

AUD/USD price chart

AUD/USD price chart

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

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.

Find out more about

Trading forex
Forex CFD details
Learn to trade fx

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 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.

IG is a trading name of IG Markets Ltd and IG Markets South Africa Limited. 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 order to utilise their foreign investment allowance should the South African resident wish to open an offshore account with IG Markets Limited.

IG provides execution only services and enters into principal to principal transactions with its clients on IG’s prices. Such trades are not on exchange. IG Markets South Africa Limited is an authorised financial services provider (FSP No 41393). Whilst IG Markets South Africa Limited is a regulated FSP, CFDs issued by IG are not regulated by the FAIS Act as they are undertaken on a principal-to-principal basis.

IG Markets South Africa Limited is an authorised over-the-counter derivative provider and is regulated by the Financial Sector Conduct Authority.

The information on this site is not directed at residents of the United States or Belgium or any particular country outside South Africa and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Voted SA’s top CFD provider in Business Day Investors Monthly Annual Stockbroker Awards in 2012, best platform for Active Day Traders in 2013 and 2014, SA's best Online Broker in 2015 and 2017 and SA's best CFD provider in 2020 as well as SA's Top CFD Broker in 2021.