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

A new Brexit poll this morning puts fresh strength into sterling, while the Aussie continues its woeful performance. 

EUR/USD forex pair
Source: Bloomberg

The drop back from the highs of last week continues, but for now the $1.14450 support area is preventing further downside. However, the pair needs to push on above $1.45 and then $1.4550 in short order to avoid fresh downside and a move back to the rising trendline from the March lows.

If further selling does develop then support may enter the fray around $1.4367, the 50-day simple moving average (SMA), and then below this the trendline comes in around $1.4340.

An early gain for this pair indicates the rising trend from last week is still in full swing. The next target is, once again, the $1.4670 area, and if it closes above here then the next area to watch will be the 200-day SMA at $1.4783.

Only a move below $1.44 would negate the current bullish outlook.

Further comments overnight have sent the pair crashing below the $0.72 area, with the outbreak of fresh bearish momentum taking us rapidly towards $0.71 and then down towards $0.70.

It looks like selling on the rallies is still the main approach to take here, so as long as the pair doesn’t move back above $0.73, any rally should be taken as an opportunity for further short positions.

The drop back below ¥111 adds further to the idea that we may be seeing an end to the current bounce off the May lows, with the longer-term downtrend reasserting itself.

So long as the pair holds below ¥111 then the next target will be the area around ¥108. It would take a firm close above the high from Monday, and even then bulls will need to get the price firmly above the late April high of ¥112. 

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.