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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

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

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