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

GBP/USD is the big outperformer, as a breakthrough in Brexit negotiations push the pair higher. Meanwhile, EUR/USD and AUD/USD have both been moving lower, with the dollar regaining ground.

EUR/USD breaks below Fibonacci support

EUR/USD has tumbled past the 76.4% retracement this morning, threatening to negate the gains seen over the past month.

The key signal we would need to see for such a bearish shift to occur, would be a break below $1.1712. Until then, there is still a good chance we could see this market regain ground to continue the creation of higher highs and higher lows. 

EUR/USD chart

GBP/USD breaks higher following Brexit breakthrough

GBP/USD has pushed higher overnight, following a breakthrough in Brexit negotiations between the UK and EU. The likely commencement of trade talks this month should provide some near-term upside.

A break above $1.3520 would point towards a rally into the $1.3550 resistance. Should GBP/USD manage to break and hold above that level, we would be looking at the possibility of a return to the $1.3659 resistance level. On the flipside, a break below $1.3453 would point towards a retracement of the $1.3321-$1.3520 rally. 

GBP/USD chart

AUD/USD breaks key support to return to bearish trend

AUD/USD managed to break below $0.7551 on Thursday morning, bringing the pair back into a bearish medium-term picture.

This means the short-term picture now conforms with the wider bearish picture, unless $0.7654 is broken. The immediate picture shows clear lower highs and lower lows, which provides a continued bearish picture. Thus, as long as we do not break above $0.7530, then a bearish short-term picture is in play. 

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.