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

Another dip for EUR/USD is being met with fresh buying, while USD/JPY has recovered a key resistance level, and looks set to move higher.

Euro notes
Source: Bloomberg

EUR/USD - bearish outlook in short term?

A swift reversal in EUR/USD have caused some worries for euro bulls, but the rally may not be entirely done yet.

Short term, we can expect some bearish developments if the price falls below $1.11 on the hourly chart, but longer term, as long as the price holds $1.10, the buyers are firmly in charge. A recovery will target $1.13 and then $1.1366.

USD/JPY moves higher

The recovery in USD/JPY bodes well for risk assets as a whole, with the break back above key resistance at ¥111.68 a good first step in any recovery. A rally from here would head towards ¥112.50, where it may encounter resistance as it reaches the downtrend line off the 10 May high.

A move above the 100-day simple moving average (SMA) at ¥112.60 would then target the May high at ¥114.37. Bears need to see a daily close back below ¥111.68 to restore the negative outlook. 

AUD/USD uptrend remains if the price holds above $0.74

A dip overnight prompted by news of a China's downgrade by Moody's was met by fresh buying, so we could see a move back to $0.7510 and higher in AUD/USD.

The 200-day SMA at $0.7536 still needs to be broken, but aslong as the price holds above $0.74, the upside picture remains intact. 

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