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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. 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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

Gains for EUR/USD and AUD/USD could point towards further upside to come. However, with long-term uptrends in place, another leg lower always seems to be around the corner.

anonymous

Publication date : 2018-08-20T09:19:16+0100

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EUR/USD drifts lower after recent rebound

EUR/USD is moving lower, following on from a rebound in the second half of last week. With such a clear downtrend in play, there is always a strong likeliness of further downside to come.

However, with the break above $1.1428 on Friday, there seems to be a heightened chance of a stronger short-term rebound. A break back below the $1.1300 mark would signify a continuation of the downtrend. However, until then, there is a strong chance we will see the pair gain further ground, if only to retrace more of the sell-off from $1.1628.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD consolidating after recent decline

GBP/USD has been gradually gaining ground over recent trading days, with the price seemingly retracing the decline from $1.2828.

However, given the upside break in EUR/USD, there is a chance that we are going to see a more protracted move to the upside. A rally through $1.2828 would be required to bring about this more bullish short-term view. Until then, there is a good chance we will see the pair turn lower again soon enough.

GBP/USD chart

GBP/USD chart

GBP/USD chart

AUD/USD rally could bring shorting opportunity

AUD/USD has been gaining ground since the middle of last week, with the pair approaching the 50% retracement of the $0.7453-$0.7202 decline.

This upside looks likely to persist for now, with a rally above the 61.8% Fibonacci retracement looking likely. Such deeper retracements could provide a strong chance to look for the next short in AUD/USD. Unless we see the price rally through $0.7453, any short-term upside is seen as an opportunity to sell the pair.

AUD/USD chart

AUD/USD chart

AUD/USD chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, 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. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

IG is a trading name of IG Markets Ltd and IG Markets South Africa Limited. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in order to utilise their foreign investment allowance should the South African resident wish to open an offshore account with IG Markets Limited.

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