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, GBP/USD and AUD/USD

The dollar is regaining some ground after a sharp decline across the board. Is this the beginning of a wider bearish picture for the dollar, or just a blip?

Video poster image

EUR/USD pulling back after recent bullish break

EUR/USD has been moving lower since Friday morning, coming off the back of a trendline breakout. The fact that we saw a move that barely even reached the 50% level points towards the possibility of further upside.

With that in mind, the current pullback looks like a short-term retracement before we turn higher once again. A break below $1.1302 would negate that bullish short-term view.

EUR/USD chart

GBP/USD weakening from confluent resistance

GBP/USD managed to push sharply higher towards the end of last week, with the price rallying into Fibonacci and moving average resistance. That confluence of the 61.8% retracement, alongside the 200-day simple moving average (SMA), provides a potential turning point for the market.

That being said, there is still room for further upside over the near term, with a strong possibility of a rally into the 76.4% retracement ($1.3125). Much of the direction in the pound is going to be influenced by political wrangling over Brexit, and thus keep an eye out for any new comments from the UK or EU. For now, watch for another potential move higher, with a break through $1.3043 required to point towards another move higher.

GBP/USD chart

AUD/USD weakens from Fibonacci resistance

AUD/USD rallied into the 76.4% retracement last week, with the pair moving lower since. The trendline breakout seen recently points towards a possible bullish reversal for this pair, yet we would need to see a move above $0.7315 to provide greater credence to that idea.

Until then, it is worthwhile noting the ability to reverse lower from here, with a break back above Friday’s peak providing greater confidence for the bulls.

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