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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

Small gains for EUR/USD come after heavy losses, while the Aussie is trying hard to bottom out after a sustained downtrend. 

Australian dollar notes
Source: Bloomberg

EUR/USD holding the $1.0850 for now

After three days of losses EUR/USD has found some buying momentum, holding the $1.0850 area. However, for now this looks more like an opportunity to sell into strength, particularly if the pair fails to recover $1.09.

A reversal of the small overnight gains would indicate that the sellers are still in control, and that we can expect a push to the 200-day simple moving average (SMA) at $1.0828 and lower.

EUR/USD chart

GBP/USD - RSI showing declining momentum

The Bank of England (BoE) day has arrived, which means we are likely to see increased volatility for GBP/USD after several quiet sessions. Over the past week pushes towards $1.30 have been defeated, with the daily relative strength index (RSI) showing declining momentum.

However, we can see intraday support at $1.2930 and then $1.29, while below this $1.2840 comes into play. 

GBP/USD chart

AUD/USD - a bigger rally on the way?

Having managed to halt the rout around $0.7340, AUD/USD bulls will be looking for a push back towards $0.74, with a move above this on the hourly chart creating a new higher high and reinforcing the impression that a bigger rally could be in the making.

A potential resistance area at $0.7474-$0.7493, and a move in this direction would also run into resistance from the descending trendline off the March highs.

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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