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

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

A quiet day awaits with US markets closed for Independence Day, but a dovish RBA has hit the Aussie hard.

Euro and dollar
Source: Bloomberg

EUR/USD takes a tumble

EUR/USD took a tumble yesterday, but remained above the weekly pivot at $1.1347. It tried to move below it this morning but, so far, buyers are holding it above this point. The $1.1366 area is the one to watch, being previous resistance from last August.

A daily close below that level would continue to reinforce the view that more downside is on the way here. Below $1.13 the drop could be dramatic, unwinding much of the ground gained since the beginning of May. 

EUR/USD price chart

GBP/USD loses ground

Yesterday’s drop for GBP/USD also stopped at the weekly pivot ($1.2921 in this case), so we have a level against which to trade. A close below this, on the daily chart, opens the way to the 50-day simple moving average (SMA) at $1.2869, and then down to $1.2775.

Any recovery faces the task of pushing through $1.3030, yesterday’s high, and on above $1.3048, the high from mid-May.

GBP/USD price chart

AUD/USD with potential to bounce

The Reserve Bank of Australia’s (RBA) dovishness has prompted heavy losses for AUD/USD, but the price has now retraced to the 100-period SMA on the four-hour chart, and with momentum now heavily oversold the potential for a bounce is high.

A retracement and a new lower high below $0.77 would be needed to indicate that the sellers are back in control. 

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