FX levels to watch: EUR/USD, GBP/USD and AUD/USD
Dollar strength remains a key driver for markets, with EUR/USD, GBP/USD and AUD/USD weakness looking set to continue for now.
EUR/USD declines further amid wider downtrend
EUR/USD has been selling off once more this week, with the recent rally into the 61.8% providing us with a bearish turn. That move conforms with the wider trend of lower highs and lows in place through 2019 thus far. This points towards a break below $1.1234 soon enough, with the continued creation of lower intraday highs providing us with a bearish outlook.
With that in mind, further downside looks likely, with a break through $1.1343 required to bring a more bullish view. Meanwhile, with the failure to break below $1.1289 this morning, there is a good chance we are going to post a deeper short-term rebound should we break through $1.131.
GBP/USD sell-off slows, with key resistance coming into play
GBP/USD has been regaining some composure overnight, as the sell-off slows to take the price back towards trendline resistance.
While that could be the defining factor which sends price lower once more, the key level to watch here is $1.3180, with a bearish outlook remaining in place unless we see a break through that swing high.
AUD/USD breaks below critical support level
AUD/USD fell below $0.7054 overnight, with a disappointing gross domestic product (GDP) figure driving the Australian dollar lower across the board.
Looking at the four-hour chart below, it is clear that we have broken out of a topping pattern, with further downside expected from here. That conforms with the wider bearish trend in place for the pair. As such, while we could see some form of short-term rebound at some point, a bearish outlook is in play unless we break through $0.7092.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
