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

Negativity prevails across markets this morning, with fresh losses for the Aussie and further downward moves for sterling.

Pound coins and dollar notes
Source: Bloomberg

GBP/USD heads lower

Fresh Brexit polls continue to knock this pair, as the ‘Leave’ campaign appears to be moving into the ascendant. A recovery to $1.43 overnight has fizzled rapidly, and now we look to see if the pair can break yesterday’s low around $1.4115.

If it pushes on, the next area to watch would be $1.40, and then below this the February low at $1.3836 comes into prospect.

EUR/USD retreats

Yesterday saw a modest bounce in the middle of the day that recovered most of Friday’s losses, but then stalled at $1.13. As the new day has got underway the pair has retreated.

The next support lies around $1.1230, and below this the pair will head towards the rising trendline from December, potentially seeing support materialise around $1.1140. 

AUD/USD continues to drop

The downward move for AUD/USD appears to be gathering pace, after the small bounce yesterday.

A push through $0.7350 would likely see downside momentum accelerate, with the potential for a move back to the 200-day simple moving average (SMA) at $0.7267 in the first instance, and then down to the May low in the region of $0.7150.

It would need a close above the daily descending trendline off the April high, ie above $0.75, to reverse the current bearish impression.

USD/JPY heads towards lows of early May

The downward trend continues here, although the pair is somewhat skittish around ¥106, the lows of early May.

A break below here would then head towards the October 2014 low around ¥105.20, and then the risk is a swift dive to ¥102. A rally needs to get back above ¥106.50 to even begin to dent the bearish outlook. 


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.