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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

All eyes are on the BoE as it announces its latest decision, with a rate hike a very high probability.

GBP/USD
Source: Bloomberg

EUR/USD turns lower once more

Having spent the past few days trying to break back above $1.1662, and failing, EUR/USD is now turning lower once again.

Last Friday’s low of $1.1574 will come into play if we see additional losses, with the $1.1489 area the next zone to watch. A close above $1.1662 is needed to reverse the bearish outlook.

EUR/USD price chart

GBP/USD waits with bated breath

The Bank of England (BoE) decision is likely to result in a volatile day for GBP/USD, so traders will have to move carefully.

The run up in recent days from below $1.31 has stalled at $1.33, so a close above $1.3341 is needed to confirm bullish momentum, bringing the $1.3427 area into play as a result. It will be difficult to determine a direction for the pair until the dust settles from the BoE meeting.

GBP/USD price chart

AUD/USD runs into resistance

A steep rally for AUD/USD over the past day could provide a selling opportunity on the four-hour chart, as the price falters around $0.77, as it did in late October.

If the price turns lower, $0.7650 and $0.7623 become the levels to watch. A move above $0.7750 is needed to indicate that buyers may be regaining control.

AUD/USD price chart

This information has been prepared by IG, a trading name of IG 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. 

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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