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

The dollar weakness story looks likely to continue, with EUR/USD, GBP/USD and AUD/USD having gained ground this week. However, with EUR/USD and AUD/USD at key resistance levels, will we see key upside breaks today?

Source: Bloomberg

EUR/USD pauses at crucial resistance level

EUR/USD has finally paused for a breather following a week of substantial gains in the pair. The $1.1123 mark is a crucial resistance level considering that it previously underpinned a descending triangle pattern for over two-months.

As such, the retest of this area as new found resistance means we need to break through to provide a clue that the rally is set to continue. Until then, there is a chance we could start to see the pair turnaround from here.

The daily chart shows that we have posted a spinning top candle yesterday, with the 50-day simple moving average (SMA) also providing resistance at this region. Thus, watch out for the response to this level as a sign of where the next move is going to come. 

GBP/USD rally likely to persist

Yesterday saw an incredible rally for GBP/USD, following a particularly super Thursday. Price has been consolidating overnight, with the next move likely to provide another leg higher for the pair.

As such, an hourly close above $1.2494 would provide a renewed bullish view, whereas an hourly close below $1.2418 would hint at a deeper retracement of yesterday’s rally, at which point the Fibonacci support levels come into play.

AUD/USD attempting to push through major level

AUD/USD has been attempting to push through the $0.7689 resistance level overnight, following on from a week of gains in the pair. Despite a retracement this morning, we have seen price pull back to an ascending trendline for support.

As such, the uptrend remains intact, with a push above $0.7689 likely. Should that occur, watch out for the wedge top and $0.7697 as the next key points of resistance.

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.