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

Weakness across EUR/USD, GBP/USD, and AUD/USD could be short term in nature, given wider bullish picture.

EUR/USD continues to weaken within wider retracement

EUR/USD is turning lower once more this morning, as the pair looks set to head towards the 76.4% retracement at $1.1771. The ability to post an hourly close below the 61.8% ($1.1808) mark would point towards a possible deeper retracement.

However, we would need a move below $1.1712 to negate the wider uptrend, and as such, while we could see further downside in the near-term, there is a good chance we could see the price move higher before long.

EUR/USD chart

GBP/USD continues to tracks lower

GBP/USD is also turning lower, following a series of lower highs since Thursday’s peak. This looks like a possible retracement, with the possibility of longs at deeper retracements.

However, for now it looks likely that we will see further downside, with a break above $1.3461 required, to negate the short-term bearish view. 

GBP/USD chart

AUD/USD falls into Fibonacci support

AUD/USD sold-off overnight, with a disappointing gross domestic product (GDP) figure proving a drag. The ability to remain above $0.7551 will be key here, with a bullish view in place for a bounce from the 76.4% retracement ($0.7575).

The recent trendline break, and creation of higher highs points towards a potential bullish reversal from here. Alternately, should we break below $0.7551, it could point towards a continuation of the bearish story seen over recent months.

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