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

Dollar strength continues to make itself felt, while the euro is looking to regain lost ground against sterling.

Euros and pounds
Source: Bloomberg

EUR/GBP controlled by the euro bulls

A spike higher to £0.8740 then brought out fresh sellers, but despite a drop in the early part of the session it looks like the euro bulls are in control here.

We need to see a recovery back above £0.87 to confirm strength, but so far in the past week, buyers have steadily lifted EUR/GBP, with higher lows indicating bullish momentum. Bears would likely seize control if the price fell below the £0.86 level.

EUR/USD in the lows

The steady trend higher since early March reversed for EUR/USD at the beginning of the week and there seems little sign of any buyers returning here. Indeed, yesterday’s lows around $1.0750 are now under threat, with a further fall threatening the $1.0714 level and opening the way to lows in the direction of $1.06 and $1.0520.

Bulls will have to hope that the rising trend from the December lows holds, which would suggest a bounce on the daily chart around $1.06.

AUD/USD still dominated by the buyers

The bullish reversal for AUD/USD earlier in the week suggests that buyers still have the upper hand, but the price needs to move above $0.7680 to avoid giving the impression that a lower high is being created.

A move through $0.7680 would suggest that another retest of the $0.77 area is possible, while bears will want to see a close below the rising trendline off the December lows. This would require a drop below $0.76. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.