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 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 ensure that you fully understand the risks involved.

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

Dollar gains have dragged the likes of EUR/USD and AUD/USD lower, yet with Fibonacci support in play, there is a strong chance we will see a move higher from here.

Video poster image

EUR/USD retraces into key Fibonacci support

EUR/USD been continuing its period of weakness, following the rally into a new swing high last week. That break into a new 40-day high means that the current weakness we are seeing is likely to be a retracement, rather than a bearish reversal.

With that in mind, the pullback into the 76.4% retracement is particularly interesting. This deep retracement looks like a good area to go long, with a break back below $1.2239 required to negate this bullish outlook

EUR/USD price chart

Will EUR/GBP continue to rise?

EUR/GBP has been moving gradually higher following the retracement into a crucial support zone last week.

With the price around the bottom end of its recent ascending channel, there is a strong chance we could see the price rise once again. A more bearish outlook would come with an hourly close below £0.8733.

EUR/GBP price chart

AUD/USD turning higher from confluence of support

AUD/USD is moving higher after the price fell into the merging trendline support and the 76.4% retracement. Given the multi-month uptrend, there is a strong chance we will see the price begin to turn higher from here.

Looking at the longer term, there is a bearish case to answer to, but that would only come back into play with a break back below $0.7501. Until then, this index looks like a particularly interesting area for longs.

AUD/USD price chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about