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

USD weakness and some hawkish comments from the ECB’s chief economist have caused a recovery in key currency pairs.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-06-07T09:21:55+0100

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EUR/USD rises on hopes of end to QE

Steady gains continue here for EUR/USD, thanks to some comments from the European Central Bank’s (ECB’s) chief economist regarding quantitative easing (QE).

As a result, the buyers remain in charge, with $1.1822 and then $1.1915 being the near-term levels to watch. Support is likely around $1.1717.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD bolstered by bullish momentum

Here too, the buyers are driving GBP/USD higher, with $1.3550 in their sights as a first target.

Dips towards $1.3330 should find buyers. It will need a move back below $1.33 to suggest the downward move from April is back on again.

GBP/USD chart

GBP/USD chart

GBP/USD chart

AUD/USD returns to key trendline

We have reached an interesting point for AUD/USD, as it rallies to the rising trendline from the December 2016 lows, which it fell below in late April.

If this previous support becomes resistance, we may see the price turn lower and push further in the direction of $0.7519. A close above $0.7680 recovers the trendline and could signal a broader revival.

AUD/USD chart

AUD/USD chart

AUD/USD chart

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