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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. 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 financial instruments and come with a high risk of losing money rapidly due to leverage. 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

The dollar is falling out of favour once more this morning, with EUR/USD, GBP/USD, and AUD/USD all turning higher, in a follow up to last week’s strength.

GBP/USD
Source: Bloomberg

EUR/USD breaks higher, with further upside looking likely

EUR/USD has punched into a new two-month high this morning, following on from a sharp appreciation on Friday. With a shallow pullback this morning, we can look for short-term upside play, utisiling the close proximity of the recent swing low to enable a strong risk-to-reward trade.

As such, while the price remains above $1.1912, another leg higher looks likely from here. A move back below that level would point towards a retracement of the move up from $1.1836.

EUR/USD chart

GBP/USD breaks resistance amid upward channel

GBP/USD is punching higher this morning, in a continuation of the ascending channel that has been in play for the past fortnight.

With the price moving above $1.3338, it looks like we're in the midst of a bullish breakout for the pair. This is in line with the wider bullish trend throughout 2017.

GBP/USD chart

AUD/USD breaking higher once more

AUD/USD is pushing higher, following a retracement lower in the second half of last week.

The ability to break through $0.7638 is key to providing a signal that we will see further upside to come from here. Given the long-term downtrend, this bullish shift is tentative in nature. 

AUD/USD chart

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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