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

The dollar resurgence has continued, with EUR/USD, GBP/USD and AUD/USD all tumbling to signal potential bearish trend shifts.

EUR/USD back at range support

EUR/USD has dropped into the absolute bottom of its three-month range, with the $1.2154 level providing the critical area to watch out for today.

A break below there would signal a potential wider retracement of the $1.1554-$1.2556 rally. As such, keep an eye out for a reaction at this level, where a break below would signal the beginning of a decline towards Fibonacci support around $1.2055-$1.1936 (50-61.8%). Alternately, this could be the source of another rebound, given the existence of this multi-month range. It all comes down to the $1.2154 level.

GBP/USD drops out of uptrend

GBP/USD has broken out of its uptrend with the drop below $1.3965 this week.

That provides us with a bearish outlook from here on in, where $1.3889 being the next key support level to watch out for. A break below $1.3711 would provide a wider bearish signal, yet for now there is a strong chance we will see further downside come into play over the short term.

AUD/USD drops towards critical breakout level

AUD/USD has been in constant decline over the past week, with the price falling below trendline and Fibonacci support to signal a potential trend change.

The uptrend seen in play over the past two years would be negated with a break below $0.75, and given the below the 76.4% retracement, there is a strong chance this will happen. For the short term, the ability to remain below $0.7621 would point towards a continuation of the downtrend.

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.