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

Gary Cohn’s resignation has driven a dollar weakness move. However, with wider trends pointing towards further downside for EUR/USD, GBP/USD and AUD/USD, such short-term gains could be fleeting.

Video poster image

EUR/USD consolidating after sharp drive higher

EUR/USD pushed through the crucial $1.2355 resistance level yesterday, bringing about a more bullish drive towards the 61.8% and 76.4% retracements.

The former has been hit, yet another drive higher looks likely. However, given the sharp push higher yesterday, there is a strong chance we could see the pair move into retracement mode in the near term. This would be viewed as a short-term move, unless we see a break back below $1.2269 to signal a bearish shift. To the upside, look out for Fibonacci resistance at $.2461, with the pair still having a strong likeliness of turning lower given the break below $1.2205 last week. A rally through $1.2556 would be required to negate that view.

EUR/USD chart

GBP/USD continues to grind higher

GBP/USD has maintained its bullish short-term path, with the price rallying towards trendline resistance.

This highlights the fact that we remain within a wider trend of lower highs and lower lows, which would only be broken with a rally through $1.4070. Until then, the current upside we are seeing is likely to be a retracement before we turn lower, with Fibonacci resistance coming into play alongside the descending trendline.

GBP/USD chart

AUD/USD rally unlikely to last

AUD/USD has been moving gradually higher amid a dollar weakness story in the wake of Gary Cohn’s resignation.

However, this upside looks like part of a wider downtrend, with any price action around trendline and Fibonacci resistance looking like a good shorting opportunity. With that in mind, a bearish outlook is in place, unless we break above $0.7893.

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