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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Dollar strength continues to drive EUR/USD, GBP/USD and AUD/USD lower

EUR/USD, GBP/USD and AUD/USD continue to move lower, with bearish trend likely to continue as we close out the week.

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EUR/USD respects Fibonacci resistance after Wednesday pop

EUR/USD has managed to arrest its declines over the second half of the week, with Wednesday’s consumer price index (CPI) reading providing a rare day of gains.

That move higher brought us into the 76.4% Fibonacci resistance level at $1.1754, which is an initial resistance level to consider. A beak up through the $1.1769 level brings about the potential for a wider retracement of the $1.1908 to $1.1706 move. As such, a bearish view holds, with a rise through $1.1769 pointing towards a greater potential for near-term upside.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD continues to move lower after support break

GBP/USD has continued its path lower following the break below $1.3843 on Tuesday.

The break through $1.391 in late July does highlight the strong chance that this current pullback is a short-term move before the price turns upwards once again. However, a bullish signal comes with an exit from this intraday trend of lower highs. Thus, for now, a rise through $1.3888 would bring the bulls back into play. Until then, further downside looks a strong possibility.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD at risk of another sell-off as price approaches support

AUD/USD has turned back down towards the key $0.7316 support level, following a 61.8% Fibonacci retracement in the wake of a downside trendline break.

That means we could soon see the wider bearish trend kick in once again, with a break below $0.7316 to $0.7289 signaling a continuation of that negative outlook.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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