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

Easing of trade war fears has helped revive the US dollar for the time being. 

EUR/USD falls back to support area

EUR/USD has fallen back to the area around $1.2250 that provided support back in mid-March.

If this holds, then a bounce back towards $1.24 is possible, and then on to the $1.25 area. A break lower targets $1.2165 and then $1.2093.

GBP/USD pauses after modest gains

After edging higher over the past few days, we have seen GBP/USD stall below $1.41, but the services purchasing managers index (PMI) will likely restore a degree of direction.

Above $1.41, the $1.4145 and then $1.4220 levels come into view. A close below $1.40, which has provided support over the past week, would bring on a more bearish tone and suggest a move down to $1.3943 and then $1.3836.

AUD/USD rally stalls

Having rallied off the lows around $0.7640, AUD/USD has faltered around $0.7720.

A further drop will bring $0.7650 back into view, while a reversal would open the way to $0.7750 and $0.78. 

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 IG 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.