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

A key day dawns for sterling, while the euro is still pushing lower after commentary from Mario Draghi yesterday.

EUR/USD currency cross
Source: Bloomberg

GBP/USD seeks some bullish momentum
A barrage of UK data today will keep sterling on the back foot until after 9.30am, but the slow drift lower continues. GBP/USD upside moves of late have been constrained by the $1.4550 area, so this and then the $1.46 zone must be cleared to get bullish momentum moving. Dips toward $1.44 have hitherto been bought, but a break below this level targets $1.4277 and then $1.4230.

GBP/USD chart

EUR/USD drop stalls
The EUR/USD downward move has stalled around $1.1150, but given a resumption of bearish momentum we look for $1.11 and then $1.1070 in the short-term. A more sustained move would head towards the 2 February peak at $1.0940. Any bounce needs to clear $1.1250 and then $1.1350. 

EUR/USD chart

AUD/USD benefits from risk appetite
The general recovery in risk appetite has done wonders for AUD/USD, and now we look to see if the pair can push on to $0.72 and then above the February high around $0.7250.

The next obstacle beyond this would be the 200-day simple moving average (SMA) at $0.73. AUD/USD has not touched this indicator since September 2014, so we could be seeing the beginning of a new trend higher, especially after the ferocious battles to stay above $0.70 that have been the hallmark of trading in this pair since September last year. 

AUD/USD chart

USD/CAD looks ready to tumble further
The failed attempt in USD/CAD to move above C$1.40 resulted in a hefty move lower yesterday, that puts the pair on course to test the low of the month around C$1.3639. Below this we look to C$1.3457, the peak from September. Any bounce needs to clear the C$1.40 area and the 50-day SMA (C$1.3984).  

USD/CAD chart

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find articles by analysts