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

Easing of trade war fears has helped revive the US dollar for the time being. 

EUR/USD falls back to support area

EUR/USD has fallen back to the area around $1.2250 that provided support back in mid-March.

If this holds, then a bounce back towards $1.24 is possible, and then on to the $1.25 area. A break lower targets $1.2165 and then $1.2093.

GBP/USD pauses after modest gains

After edging higher over the past few days, we have seen GBP/USD stall below $1.41, but the services purchasing managers index (PMI) will likely restore a degree of direction.

Above $1.41, the $1.4145 and then $1.4220 levels come into view. A close below $1.40, which has provided support over the past week, would bring on a more bearish tone and suggest a move down to $1.3943 and then $1.3836.

AUD/USD rally stalls

Having rallied off the lows around $0.7640, AUD/USD has faltered around $0.7720.

A further drop will bring $0.7650 back into view, while a reversal would open the way to $0.7750 and $0.78. 

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. See full non-independent research disclaimer and quarterly summary.