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

The dollar is back with a bang, as GBP/USD, EUR/USD and AUD/USD all show signs of weakness. Could this be the beginning of a wider reversal?

Pound and dollar
Source: Bloomberg

EUR/USD breaking lower after recent resurgence

EUR/USD has broken below the key $1.1748 level this morning, in a surprise move that points towards a potential period of weakness for the pair. Crucial to that story is the need to break below the $1.1689 level. Until that happens there is a chance we could see a rebound as a deep retracement of the $1.1689-$1.1847 move.

So far we are seeing the 76.4% respected, and as such it makes sense to be mindful of the potential to rally from here. Conversely, a break below $1.1689 would have bearish implications for the medium term.

EUR/USD

GBP/USD back at key support

GBP/USD has sold off below the $1.2952 support level this morning, following a second rally into the 76.4% retracement.

The key here is whether we can see a break below $1.2932, which would point towards a wider bearish picture developing. 

GBP/USD

AUD/USD tumbles into historical support zone

The pair has followed the wider theme of dollar strength, with the recent signs of resurgence being negated by a drop back below the $0.7835 level. This takes the price into a key historical zone of resistance, which would be expected to act as support this time around.

That being said, we would need price action to guide us, and as such a bearish picture is back in play unless we break back above $0.7919.

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