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

A sudden flurry of news has sent GBP/USD southward, while EUR/USD continues to struggle. 

Dollar notes
Source: Bloomberg

EUR/USD 50-day SMA could stand in the way

EUR/USD breakdown goes on here, with yesterday’s rally to $1.1208 (the weekly pivot) being met by fresh selling. Now the low of last Thursday is under threat, with a push below $1.1130 likely to see a test of $1.1109, the crucial level.

Below this we have the key $1.10 level, although the 50-day simple moving average (SMA) at $1.1023 could stand in the way. From the looks of it, intraday rallies will continue to be sold for the time being.

GBP/USD hampered by Carney

Mark Carney has intruded on the calm of the session this morning, sending GBP/USD flying lower this morning as he reiterated his call on not raising interest rates. This is hardly a surprise, as last week’s Monetary Policy Committee (MPC) meeting showed, but it has been enough to send the pair into freefall.

If it holds below $1.27 then $1.2616 will be the next target, and then below this the 200-day SMA at $1.2557. As with EUR/USD, the sellers appear to be in control, with a recovery above $1.28 needed to reverse the bearish outlook.

AUD/USD - upward momentum?

AUD/USD has recovered early on in the London session, holding the weekly pivot at $0.7591. A push above $0.7540 would see the pair clear the highs from last week that were so assiduously defended by the sellers.

This would open the path to $0.7680 and then $0.7750. Sellers will need to break $0.7570 to get some real downward momentum. 

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