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, GBP/USD and AUD/USD

GBP/USD and AUD/USD are showing bearish reversal signs, despite recent gains. With EUR/USD still in a bullish trend, will we see the dollar dominate?

IG Analyst

Publication date : 2018-09-24T09:26:06+0100

Video poster image

EUR/USD rallying from horizontal support

EUR/USD has started to gain ground from the $1.1724 support level, which represents the highs from the beginning of last week.

With a clear uptrend in play over recent weeks, the weakness we have seen since Friday’s peak of $1.1803 is likely to start fading. As such, while further short-term downside is possible, it is worthwhile noting that it is likely to be temporary, and thus a bullish outlook remains in play unless the price falls below $1.1650.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD instigates fight back after recent decline

GBP/USD dropped out of its recent uptrend, with the break below $1.3097 pointing towards further losses to come.

The fall below the descending trendline support on the stochastic adds to that notion that we are now in a more bearish phase, with the fears over Brexit likely to continue denting confidence in the pound. For the time being, we look set for short-term upside, but unless we break above $1.3298, any such gains are expected to be fleeting, with another move lower looking likely before long.

GBP/USD chart

GBP/USD chart

GBP/USD chart

AUD/USD gaps lower from trendline resistance

AUD/USD has started the week in bearish fashion, with the price gapping lower after hitting trendline resistance on Friday morning.

With the price having moved into the four-hour simple moving average (SMA), alongside the swing low from Thursday, a break below that $0.7254 level will dictate the state of play going forward. Given the wider downtrend, there is a strong chance we will see the pair start to reverse lower from here, with a rally above the $0.7382 level required to negate the downtrend in place throughout 2018 thus far.

AUD/USD chart

AUD/USD chart

AUD/USD 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

Trading forex
Forex CFD details

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, 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. You should consider 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.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.