Established in 1974
185,800 clients worldwide
Over 15,000 markets

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

EUR/USD rally has the potential to turn lower, while USD/JPY attempts to regain ground after overnight losses. Meanwhile, a strong rally for AUD/USD could start to slow as it approaches key resistance.

Euro notes
Source: Bloomberg

EUR/USD consolidates after rally

EUR/USD has been consolidating this week, following a sharp rally towards the 76.4% retracement level last week. The ability to remain below $1.1040 provides a continued bearish outlook, where an hourly close above that level points towards a wider retracement of $1.1100 and even $1.1123 resistance.

For now, a bearish view remains in play, with current levels offering value to the downside given the depth of the recent retracement. 

EUR/USD

USD/JPY rallying from trendline support

IN_USDJPY is moving higher, despite a period of weakness overnight which brought price back into trendline support. That support has held once more and is helping push the pair higher, towards the crucial ¥105.23 mark.

Should we see an hourly close above ¥105.23, then this would provide evidence that we are likely to push onwards from here. Given the bullish breakout seen on the daily chart, there is a strong possibility we could see this pair run higher.

However, the key will be whether ¥105.23 can be surpassed.

USD/JPY

AUD/USD rallies towards trendline resistance

AUD/USD has moved sharply higher overnight, following on from a clear bottoming out which originated at the 76.4% retracement. We are seeing price approach a trendline around $0.7680.

The wider picture points towards a possible bullish breakout. However, given the extended nature of recent gains, coupled with the existence of trendline resistance up ahead, it makes sense to be cautious of a potential retracement.

AUD/USD

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