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

Talk of potential hints about monetary policy from Janet Yellen later in the week has given the dollar breathing space in recent days, but that appears to be reversing this morning. 

Euro and dollar notes
Source: Bloomberg

GBP/USD moves higher
Cable continues to enjoy gains, even if the longer-term picture still sees the pair stuck in its post-Brexit range. Early August’s highs of around $1.3370 would be the area to see some potential resistance, while selling into strength would appear to remain the default approach here.

The downside target remains the $1.2880 area, where the pair rallied in early July, and last week.

EUR/USD on upwards move
A turnaround yesterday saw the pair move back above $1.13, and fresh gains today may see a move through last week’s high of around $1.1370.

Above here, the next resistance level to come into play would be $1.14, where June gains ran out of steam, while above here we would look towards $1.15.

A strong performance in August has reinvigorated the 2016 uptrend, so dip buying remains the approach here. 

AUD/USD continues uptrend
A modest pullback over the past two weeks for the pair does little to put a real dent in the uptrend that has prevailed since the last quarter of 2015.

The recovery above $0.76 might suggest that the buyers are back in charge, although they would then need to clear $0.77, where gains petered out earlier in the month. 

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.