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

The likes of EUR/USD, GBP/USD and AUD/USD remain in an uptrend, yet with big resistance ahead, are we going to see the short-term trend reversed?

Euro note and pound coin
Source: Bloomberg

EUR/USD pushing higher once more

EUR/USD is breaking through Friday’s high of $1.0782, with the pair passing the trendline resistance this morning. The key hurdle to overcome here is $1.0829. A break through that level would bring a bullish medium-term outlook for the pair.

Until we do break through that level, there is a chance we could pull back. However, the short-term uptrend remains intact, with the $1.0829 level the key point of reference over whether this rally will continue.

GBP/USD starts to weaken at trendline resistance

GBP/USD sold off sharply from the trendline resistance yesterday, following a strong rally throughout last week.

Despite pulling back last night, the pair has not broken below the $1.2324 thus the short-term uptrend remains intact. As such, an hourly close below $1.2324 would be required to provide the bearish outlook view that yesterday’s sell-off alluded to.

AUD/USD pullback fails to break support level

AUD/USD weakened overnight, following a more dovish outlook from the Reserve Bank of Australia in its minutes. That move lower failed to take out the key $0.7664 level and, as such, the short-term uptrend remains intact.

The pair has moved into a crucial long-term trendline resistance, which will be pivotal in determining the medium-term outlook for this pair. An hourly close below $0.7664 would look bearish, but until that happens, there is a good chance we could still move higher. 

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