FX Levels to Watch – EUR/USD, GBP/USD, AUD/USD

A quieter morning has seen little movement so far on FX markets, but the bearish picture for EUR/USD remains broadly intact. 

Australian dollar
Source: Bloomberg

EUR/USD continues this week’s pattern

EUR/USD bulls have defended $1.1109 all week, but another overnight rally off the lows is being met by fresh selling. This has been the pattern all week, even if the selling tends to subside above $1.1109.

A close below here would still suggest a push to $1.10.

GBP/USD dependent on BoE comments

GBP/USD has been at the mercy of comments from the Bank of England (BoE) members this week, but yesterday we saw the $1.2616 level defended.

The bounce petered out at $1.27, so this gives us two clear levels to work with in determining the next move. Below $1.2616 the $1.25 level comes into play, and a rally back above $1.27 would test $1.2846 and then $1.2965.

AUD/USD still declining

The price of AUD/USD continues its decline, but retracements have been fairly shallow thus far. The 200-day simple moving average (SMA) at $0.7529 is now in view, with buyers needing a move back above $0.7580 to suggest that the trend has changed direction.

A firm break below $0.7478 would raise the prospect of a move to $0.7434 or down to $0.7364.

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.