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

The dollar strength story seems like it will continue, with EUR/USD, GBP/USD and AUD/USD all looking likely to find further downside from here.

EUR/USD retracement looks to give way to further selling

EUR/USD managed to rebound back towards the $1.1526 resistance level yesterday, with the pair looking likely to turn back towards the downside following a 61.8% retracement.

The recent downtrend and break below $1.1526 points towards further downside to come, with a bearish view in place unless we see a rally above $1.1594.

GBP/USD rallies into stochastic resistance

GBP/USD has been gaining ground through the second half of the week, bringing the price into the upper Bollinger band.

While the pair would provide a more bullish outlook with a break above $1.3117, there is a strong chance we will see the pair reverse lower following this recent rebound.

AUD/USD breaks below key support

AUD/USD has maintained the wider bearish momentum, with the break below $0.7085 providing confirmation that the wider bearish trend remains in place.

A break above the $0.7097 level would bring heightened expectations of another retracement. Until then, further downside seems likely from here.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.