Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

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

Dollar strength is back in play, with EUR/USD, GBP/USD and AUD/USD all looking to continue their downtrends.

British pound
Source: Bloomberg

EUR/USD consolidates within downtrend

EUR/USD has been consolidating this week, following a strong downturn in the final week of March. The price is currently back at the 61.8% Fibonacci support level, which has been holding so far.

Given the downtrend seen of late, this looks like a short term pause rather than a bottom, with a move down to 76.4% ($1.0591) a distinct possibility. As such, while the price remains below $1.0702, a bearish outlook remains favoured, with an hourly close below $1.0651 pointing towards the resumption of the trend.  

EUR/USD price chart

GBP/USD sell-off continues apace

GBP/USD is continuing its descent following a rally into the 76.4% retracement on Friday. The market reversal we have been looking for seems to be working out perfectly, with the price now having broken below trendline and horizontal support ($1.2433).

From here it is likely we will continue to move lower, with the pair expected to move back into the $1.2376 support before long. A bearish outlook remains valid unless we break through the $1.2496 swing high set overnight.

GBP/USD price chart

AUD/USD breaks below critical support level

AUD/USD has sold off once more, with the price falling below the key $0.7587 support level this morning. This takes us to the next part of the story, with the price having switched into a bearish trend following the March reversal at $0.7750 resistance.

We are now searching for a move back down to $0.7491, which if broken would complete a sizeable double top formation. For now, we are looking for another leg lower, with rallies sold into. As long as the price does not break through $0.7625, the bearish outlook remains in play. 

AUD/USD price 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