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

US dollar strength has eased, but the overall weakness in EUR/USD and cable continues, and AUD/USD is in bullish mode. 

EUR/USD attempts to rally

EUR/USD has bounced off $1.1717, and is pushing higher in early trading.

Overnight gains stalled at $1.18, but above here $1.1822 and then $1.1840 come into play as near-term targets. A failure to hold above this latter level would likely constitute another selling opportunity.

GBP/USD recovers from Monday lows

GBP/USD has rallied off the $1.34 level, and now needs to move back above previous support at $1.3450.

If this now becomes resistance, a turn lower would target the Monday low at $1.3390. Rallies towards $1.3510 could also be another selling opportunity.

AUD/USD rally extends into second day

AUD/USD has seen a significant rebound after finding a bottom around $0.7450. Further gains will target the area around $0.7650 that formed support in late March.

The progression of lower highs from the 2018 peak at $0.8136 remains in place, so a longer-term move above $0.78 is needed to suggest that this downtrend has been broken. The recovery above $0.7450, which puts the pair back above the December low, reinforces the idea that momentum has turned positive here. 

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.