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

The sell-off continues, as dollar strength drives the FX market. However, with AUD/USD at a crucial support level, there are questions being asked for some pairs. Meanwhile, GBP/USD and EUR/USD show little signs of letting up.

Pound and dollar
Source: Bloomberg

EUR/USD downtrend continues apace

EUR/USD is trading within a descending triangle formation, following on from a strong period of downside for the pair. We expect this to resolve with yet another leg lower today, with a closed hourly candle below $1.1000 providing us with the signal that further downside is impending.

The downward sloping resistance trendline provides us with a more difficult task when attaining the true swing high of note. However, it is clear that with an hourly close back above $1.1046, we would have broken higher from this triangle and solidified that by creating a new intraday trend change.

Thus such an occurrence would provide a signal that we are due a bounce for the pair. Until then, a bearish outlook remains, where $1.0952 represents the next important support level.

GBP/USD in stepped move lower

IN_GBPUSD has been in a very consistent downtrend recently, with the gradual sell-off often interrupted by a sharp sell-off and subsequent part recovery. We always seem to create new lower highs.

With that in mind, it is worth being bearish and seeing 50% and 61.8% retracements as potential opportunities to get short once more. Given the consistency of the downtrend, it is likely that we will see further selling to come.

An hourly close above $1.2325 would be required to negate the current bearish short-term view.

AUD/USD back at crucial support

The pair has sold off into trendline and Fibonacci support this morning, following on from a strong sell-off in the past two weeks. The existence of the 76.4% pullback is certainly worth noting as a potential area to take profit, with a retracement likely and bullish reversal also a possibility.

We would need to break and hold below $0.7442 to show that this recent weakness is going to translate into something bigger. Meanwhile we are likely to see a bounce from here, we would need an hourly close above $0.7590 to negate this recent downtrend and bring us back into a bullish mindset.

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.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.