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

Dollar strength appears to be abating, with gains for cable and the Aussie.

Australian dollar (AUD)
Source: Bloomberg

EUR/USD fights to create a new high

The rally from last week’s lows goes on for EUR/USD, with the potential for further gains should the price move on above $1.1790.

A close above here targets $1.1830, and then on to $1.1880, but a turn lower would reignite the downward move and head towards $1.1662.

GBP/USD maintains its upward move

GBP/USD has solidified its gains from yesterday and is pushing higher. We still need to see a move above $1.33 to create a new higher high in the downtrend off the September highs, but for now the buyers appear to be in charge.

Above $1.33, the $1.3427 and then $1.36 levels come into play.  A turn lower back below $1.3050 would suggest a drop to the late August low at $1.29.

AUD/USD holding key support

AUD/USD has bounced off the $0.7748 level that was major resistance back in the first quarter (Q1). If it holds this level, the next area to watch is $0.7877, which is the high from last week.

A move above here would cement the idea that the drop from the August highs has run its course. A close below $0.7748 would suggest a bigger drop to $0.7713 and then $0.7641. 

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.