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

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

The dollar comes under pressure this week, with EUR/USD, GBP/USD and AUD/USD all breaking higher. With those markets taking a breather, the recent uptrend could come back into play once more.

Pound and euro notes
Source: Bloomberg

EUR/USD retracing after strong rally

EUR/USD is pulling back following yet another leg higher yesterday in the pair. The recent rally has been slowing somewhat, still until we break back below $1.1388, another leg higher looks the likeliest outcome from here.

 As such, a move into the Fibonacci support levels looks like a buying opportunity. Of particular note are the 61.8% ($1.1410) and 76.4% ($1.1401) levels.

EUR/USD chart

GBP/USD break marks notable shift

GBP/USD has enjoyed an incredible week, thanks in no small part to a hawkish shift from the Bank of England (BoE). This has brought price through the key $1.2978 resistance level, thus ruling out the possibility that the rally was simply a retracement.

As such, it looks as though we could see another leg higher for this market through the next resistance level of $1.3048. However, for now, the difficulty is in finding how to create a trade within such a straight line market. Given the lack of recent swing lows, it makes sense to await a break back through $1.3030 to then look for longs, utilising the most recent swing low for stops.

GBP/USD chart

AUD/USD rallies into trendline resistance

AUD/USD has broken higher following a 76.4% retracement, with the price pushing into a key long-term descending trendline. Given the respect of that trendline, there is a chance of a pullback from here.

However, we would need to see a break below $0.7654 to provide confidence that such a move will be a stronger retracement of the wider rally from $0.7577. Therefore, there is a case for longs around the 76.4% retracement level of $0.7667.

AUD/USD 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