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

FX Levels to Watch – EUR/USD, GBP/USD, AUD/USD

Dollar strength is making itself felt, as the euro heads lower, with more hawkish Yellen helping it along the way.

Dollar and pound
Source: Bloomberg

EUR/USD continues its fall

Yesterday saw EUR/USD drop below $1.18, with the loss of key support at $1.1823 providing sellers with the momentum to push the pair lower. The next support looks to be the mid-August low at $1.1662.

As noted yesterday, rallies back to even $1.20 will still be selling opportunities, with a move above $1.2007 needed to indicate a new leg higher is underway.

EUR/USD chart

GBP/USD looks to bounce

Continued USD strength is causing a further retracement in GBP/USD, with the pair heading back towards $1.3268 (the early August high). The uptrend is still intact, but we can expect some additional downside here, unless a reversal back above $1.3427 occurs.

This would then prompt another move towards the high of last week above $1.36.

GBP/USD chart

AUD/USD takes further losses

AUD/USD has been dealt a blow over the past two weeks. The pair is now heading towards the support zone seen in early August (around $0.7807-$0.7849) when the price bounced.

A break below here would head towards $0.77 or lower. A recovery would then target the $0.8075 area, the peaks of the summer.

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