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

After a day of incredible volatility, we are seeing FX markets calm down somewhat, sparking a resurgence in the dollar for many pairs.

Japanese yen and US dollar notes
Source: Bloomberg

EUR/USD rollercoaster leaves bearish view intact

EUR/USD managed to gain and subsequently lose 300 points yesterday, in what was an incredible day of volatility for the pair. Crucially, despite the rally topping a key $1.1279 resistance level, the $1.1366 level is arguably more important as a swing high and it held.

On the shorter term picture, price broke back to a new low overnight and is continuing the downtrend in place over the week. The next key support level comes in at $1.0851, which is likely to be reached should we see an hourly close below the overnight low of $1.0907.

Until then, there is the possibility of a deeper retracement higher.

USD/JPY manages to end up above key ¥104.32 level

USD/JPY similarly saw substantial swings in trade yesterday, with initial selling giving way to an incredible rally back above ¥104.32. We have seen the pair top off at trendline resistance, yet it is turning higher once more.

Given the potential for a bullish reversal for USD/JPY over recent weeks, the ability to break through ¥105.95 and trendline resistance would likely signify a bullish period for the pair coming to fruition.

AUD/USD soars following choppy trade

AUD/USD saw an incredible day of volatility yesterday, with price returning to trendline support, only to break higher once more. This rally moved back above $0.7699 to provide a renewed bullish outlook.

The pair has shown signs of wanting to break higher from this multi-month triangle pattern and there is a chance this could be in the offing. A bullish outlook remains in place unless we see a move back below $0.7620.

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.