Skip to content

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 – GBP/USD, EUR/USD, AUD/USD

EUR/USD has faltered after trying to breach the 200-day moving average, while AUD/USD is looking to bounce.

Pound and euro notes
Source: Bloomberg

GBP/USD to go higher?

GBP/USD has been a dip-buyer’s paradise for the past two weeks or so. Now we are looking to see whether the pair can continue its ascent and push through the $1.2706 high from the end of January.

Beyond this lies the $1.2865 level, which served as support back in July and August. A turn lower requires the establishment of a new lower low, which would only occur once $1.2469 is broken.

GBP/USD price chart

EUR/USD facing potential reversal

EUR/USD attempted to smash through the 200-day simple moving average (SMA) at $1.0880 yesterday, but failed to hold its gains. As with cable, dollar weakness here has meant that dip buying has been the approach.

Fresh bullish momentum would see the pair head towards $1.0980 but in the near term we may see some reversal here. A drop below $1.0750 would be a worrying sign for bulls, but sellers are likely to be disappointed unless we can see a sustained price action below $1.06.

EUR/USD price chart

AUD/USD may bounce

The pullback from $0.7720 for AUD/USD has now run back to the rising trendline from the January low. This held at the beginning of March, so as long as we do not see a daily close below $0.75, further gains may be possible.

A bounce would target $0.7720 in the first instance. A failure to bounce from the trendline would mean that the $0.7490 area is the next point to look for support.

AUD/USD price chart

This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.

Find articles by writer

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.