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

Eurozone data will provide direction for euro pairs this morning, while the Aussie remains under pressure.

Source: Bloomberg

EUR/USD bounce fizzles out

The bounce off the EUR/USD lows of last week may well have run its course, as the price rebounds from below $1.16 but runs into previous support (now resistance) at $1.1662.

A failure to retake this key level will signal more weakness ahead, potentially down to $1.1498. A broader recovery would only result from a move back above $1.1750.

EUR/USD price chart

EUR/GBP heads towards trendline

EUR/GBP is taking further losses, heading back to a rising trendline that has held since May 2016. This area of rising support coincides neatly with the £0.8740 area where the price bounced back in September.

A turn higher from here would indicate the euro bulls are back in charge, with an initial target of £0.9022. A close below £0.8740 would be a bearish development, and suggest that the £0.84 area will be tested in due course. 

EUR/GBP price chart

AUD/USD tries to break 200-day moving average

The steep losses for AUD/USD of late have slowed somewhat, but the price is now failing to break back above the 200-day simple moving average (SMA) of $0.7695.

Further losses will see the pair head back to the December 2016 rising trendline, which would suggest a drop to $0.7580.

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