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

The dollar is under pressure, with EUR/USD, GBP/USD and AUD/USD all moving higher. Is this the beginning of a wider bullish move for the pairs?

EUR/USD rallies into crucial resistance level

EUR/USD has rallied into the $1.1721-$1.1727 resistance zone this morning, following a week of upside for the pair. This is a major region of resistance, which will determine the bias for the short term.

With the top of a rising wedge also joining this confluence of resistance, there is reason to believe that we could be looking at the beginning of a sell-off from here. As such, a bullish picture would only come with a rally and close above $1.1727. Until then, there is a chance we could see some weakness come into play.

Is GBP/USD a retracement of bottom?

GBP/USD has also been gaining ground, with the price breaking past the 61.8% area and testing levels above the 76.4% ($1.3252) area.

The $1.3315 level is going to be key here for the pair, with the wider bearish trend providing a distinct possibility that we will see a move lower from here. However, should we see the price break above the $1.3315 level, we would be provided with a more bullish short-term outlook.

AUD/USD showing signs of bullish resurgence

AUD/USD has rallied back into the $0.7409 resistance level, following a rally above that level on Wednesday.

We are clearly seeing signs of strength coming into play, yet we want to see a break above the $0.7444 level to provide greater confidence of a bullish breakout. Until then, watch for a potential respect of the 76.4% retracement at $0.7415.

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.

Find articles by analysts

Find out more about