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

Dollar weakness took a breather yesterday thanks to a stronger PMI figure, but it appears to be back this morning. 

EUR/USD fails to push higher

EUR/USD’s downtrend line from the highs of 2 January continues to hold. We have seen rallies so far this morning peter out around $1.2040, so a close above here on the hourly chart would signal a wider bullish move.

If the trendline continues to hold, the lows of the week just above $1.20 would come into play. The rising trendline from the December lows has yet to be tested, with this requiring a move down towards $1.1970.

GBP/USD aims for a rebound

GBP/USD buyers have come in to defend the $1.35 level over the past week.

Further upside momentum this morning comes ahead of the vital services purchasing managers index (PMI) number. Additional gains will target $1.3550, and then on to $1.3613. 

AUD/USD keeps on moving higher

AUD/USD continues to march higher, having hit its highest level in over two months yesterday. The next areas to watch on the upside are $0.7877 and then $0.7897.

Meanwhile, the upward trend comes in as support around $0.7807, but a move below $0.7750 is needed to put a more bearish perspective on the pair.

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.