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

Resurgent USD strength has knocked back a rising pound, while the euro and Aussie are on the back foot.

Euro and US dollar notes
Source: Bloomberg

Look to buy GBP/USD dips

A steady push higher in recent days is undergoing another modest retracement thanks to USD strength, but overall the attitude here should be to buy the dips. The ongoing target on the upside should still be the early August peak at $1.3350.

It would take a move below $1.3050 to reverse the current bullish outlook, which would then be headed to the mid-August low at $1.29. 

EUR/USD seems to favour selling the rallies

A sharp drop yesterday took the pair down to support at $1.1250, but with the daily stochastic now turning lower it would seem selling the rallies has become the approach to take.

A move to $1.12 would create a new lower low, and then beyond this the target would become $1.1133. A new upward move would need to clear $1.1350 to indicate a fresh rally is on the cards.

AUD/USD in the hands of the sellers

It has been a shallow downtrend in the AUD/USD pair since 10 August, but it has offered plenty of opportunities to sell into strength.

The failure to build on the overnight bounce and head back towards Tuesday’s peak at $0.7650 indicates the sellers are still in charge. A fresh low would require a drop through Monday’s low around $0.7585, clearing the way to $0.75. 

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.