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

The dollar remains in the driving seat, with EUR/USD, GBP/USD and AUD/USD all selling off once more.

Pound sterling Source: Bloomberg

EUR/USD declines into long-term trendline support

EUR/USD saw sharp losses throughout yesterdays afternoon, with an overly dovish European Central Bank (ECB) meeting sending the pair into a 20-month low. This brings about questions over whether we will respect a long-term inside trendline once more, with another leg lower sparking a potential wider breakdown for the pair.

Much like the move seen in November 2018, we do not necessarily need to respect the trendline perfectly. However, with the price having run past it, we need to see some form of resurgence from here to avoid a wider bearish picture coming into play. As such, watch for what we do from here, with another leg lower signaling a continuation of the bearish trend.

EUR/USD chart

EUR/USD chart

GBP/USD decline likely to be short term

GBP/USD has continued to move lower, with the pair seemingly retracing the $1.2773-$1.3350 rally.

Given that expectation that we are in a retracement phase, a bullish view is expected to return before long. However, for now we remain within a short-term downtrend, and thus further downside seems likely unless we break above $1.3185. Watch for Fibonacci retracements as the next levels of support, and potential buying levels.

GBP/USD chart

GBP/USD chart

AUD/USD continues to break lower

AUD/USD has broken below trendline support this week, with the pair showing signs of another likely period of downside from here.

The key is whether we continue to create lower highs, with a bearish outlook in play unless we rally above the $0.7052 resistance. Until then, any short-term upside looks like a selling opportunity.

AUD/USD chart

AUD/USD 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.

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

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.