FX levels to watch: EUR/USD, GBP/USD and AUD/USD

The dollar has come back into prominence in the wake of the Fed rate decision, sending EUR/USD, GBP/USD and AUD/USD lower. Is this the beginning of the next move lower?

EUR/USD breaking down once more following Fed meeting

EUR/USD has turned lower from the 61.8% retracement level, as it looks set for another leg lower to conform with the wider long-term downtrend.

The ABC retracement seen throughout November thus far failed to break through the $1.1621 level, pointing towards a potential reversal downwards once more. That looks to be coming into play given the break below the $1.1353 swing low set earlier in the week. As such, further downside looks likely from here, with a break above $1.1621 required to negate the bearish outlook.

GBP/USD pulls back towards crucial support level

GBP/USD has also been weakening in the aftermath of the Federal Reserve (Fed) rate decision yesterday, with the pair turning lower from the 76.4% retracement level.

That points towards a potential breakdown from here, with a rally through $1.3258 required to break into a more bullish phase. However, for added confidence, keep an eye out for a break below the $1.2951 swing low.

AUD/USD turning lower below key breakout level

AUD/USD has started weakening from just below a key breakout level, which would have mimicked the move seen in NZD/USD this week.

That inability to break through that level could see us move back in line with the wider long-term bearish trend for the pair. As such, a potential breakdown from here looks likely unless we see a rally through the $0.7315 swing high. For added confidence, keep an eye out for a break back below the $0.7182 swing low.

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