Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

FX levels to watch – EUR/USD, GBP/USD and AUD/USD

The dollar has gained prominence following on from the FOMC meeting, with EUR/USD, GBP/USD and AUD/USD all tumbling.

EUR
Source: Bloomberg

EUR/USD falls back amid dollar strength

EUR/USD managed to break below trendline support, bringing about a retracement phase for the pair.

For the time being this looks like a retracement of the rally from $1.1526, thus pointing towards a possible rebound from $1.1594. However, should we break below $1.1526 then things begin to look increasingly like we would be retracing the wider rally from $1.13.

EUR/USD chart

GBP/USD approaches key support level

GBP/USD has tumbled towards the critical $1.3054 support level, following a rebound into the 61.8% retracement.

The ability to break below that level would confirm both a lower high and lower low for the pair. As such, watch for a break and closed candle below that level to pave the way for further downside.

GBP/USD chart

AUD/USD reverses lower from 76.4% retracement

AUD/USD has been turning lower since the Federal Open Market Committee (FOMC) meeting, with the price having briefly rallied into the 76.4% retracement.

The wider context points towards further downside to come, with any rebound likely to be short-term in nature. As such, a bearish outlook remains unless we see a break above $0.7315.

AUD/USD chart

Live #IGForexChat

Put your question to the experts during our live IG Forex Chat.
Streaming on 4 October at 6.30pm (UK time).

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find an article

Find articles by writer