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

Short-term weakness across the likes of EUR/USD and GBP/USD could be fleeting, yet with AUD/USD continuing to suffer at the hands of weaker commodity prices, we could see that downtrend last longer.

dollar notes

EUR/USD turning lower following surge

EUR/USD surged higher yesterday as hopes of an Emmanuel Macron victory helped boost eurozone sentiment. We are seeing a small intraday double top coming into play this morning, which points towards a retracement phase for the time being.

With that in mind, further downside does seem likely, yet this would just be seen as an opportunity to get long once more. Near-term support comes in the form of last week’s high of $1.0951. A bullish outlook remains in play unless we break below the $1.0874 mark.  

GBP/USD looks set for short-term pullback

GBP/USD is retracing some of its early gains today, as the pair moves towards a crucial resistance level. While we have broken through trendline resistance, we still remain within a downtrend over the past week. A break above $1.2948 would be required to negate the creation of lower highs. Given the wider uptrend in play, a bullish breakout seems likely before long, yet whether this will occur today remains to be seen.

As such, an hourly close above $1.2948 would provide a resumption of the bullish outlook. Until then, there is a good chance we could see further downside for this pair today. Should that move take us below $1.2900, this would have wider implication and brings about the possibility of another lower low, below $1.2831. 

AUD/USD expected to continue downtrend

AUD/USD looks to be regaining some ground this morning, following on from an almighty sell-off this week. As long as we continue to create new lows and lower highs, this trend is expected to remain in play, thus pointing towards this bounce as a selling opportunity rather than anything detrimental to the trend.

As such, while price remains below $0.7415, a bearish outlook remains in play, with the 61.8%-76.4% resistance zone ($0.7397-$0.7404) an interesting area for shorts.

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.

Find articles by writer

Find out more about