FX levels to watch: EUR/USD, GBP/USD and AUD/USD
EUR/USD, GBP/USD and AUD/USD have been declining as they erase previous gains. Is this the beginning of a wider bearish shift?
EUR/USD dropping into critical support level
EUR/USD has continued its decline, with the pair heading into the key support zone of $1.1289 and $1.1301.
If we see the pair break below that level, we are looking at a likely wider breakdown for the pair. As such, watch out for whether or not we break below that zone, with a short-term rebound a distinct possibility until we do see such a break.
GBP/USD drifts lower within more uncertain period
GBP/USD managed to rally through the $1.2979 resistance level on Thursday, with that short-term higher high pointing towards the possibility of further upside to come.
However, with the price drifting lower, we are moving closer to the $1.2854 level which would denote a bearish continuation move. As such, the break through $1.2854 or $1.2996 would signal greater confidence in a bullish or bearish move from here.
AUD/USD drops below critical support level
AUD/USD has been declining sharply throughout the past week, with the price moving below the $0.7076 level on Friday. That negates the bullish trend that had been in play throughout the first six weeks of 2019, with further downside looking likely as a result.
Over the near term, a rally through the $0.7117 level would likely spark a short-term rebound for the pair. Until that happens, the market is likely to continue this period of weakness, with another leg lower looking likely from 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets