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

A big day dawns for cable as UK data and the latest BoE meeting dominate.

Australian dollar
Source: Bloomberg

EUR/USD misses out on $1.19

Steady gains remain the order of the day here, although the sharp spike to $1.19 has been knocked back for now.

A shallow overnight retracement has brought EUR/USD back to the 50-hour simple moving average (SMA) at $1.1830, from where it may continue to find support. It would still need a move below $1.1714 to even begin to suggest that the rally has run its course.

GBP/USD faces a potentially volatile day

Services PMI, the Monetary Policy Committee (MPC) meeting and the inflation report mean that today could be volatile for GBP/USD.

Over the past two days, gains around $1.3230 have been hard to sustain, but with the uptrend still strong, a dip back towards $1.31 should provide another potential buying opportunity. 

AUD/USD heading towards support?

The price action of the past month has centred around $0.7950 at AUD/USD. The drop over the month so far could continue towards support at $0.7877.

A rally from here would need to clear $0.8065 to suggest more upside is on the way. 

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.