FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The dollar has been gaining ground, with EUR/USD and GBP/USD pulling back. However, with intraday uptrends in play and AUD/USD breaking higher, are we set for another leg higher?
EUR/USD pullback brings buying opportunity
EUR/USD dropped sharply on Thursday, with the uptrend coming into question as a result.
However, with the fact that we continue to create higher highs and lows, this could be a good buying opportunity unless we break below the $1.1406 swing low.
GBP/USD shows signs of potential bearish shift
GBP/USD has been declining throughout the week, with the rebound on Thursday failing to break through the $1.3213 peak. The current move lower threatens to derail the upward trend, with a break below $1.3054 required to bring about an intraday bearish outlook.
As such, watch for whether that level breaks or not as a guide on whether to begin looking at things in a more bearish manner or not. Until then, the bullish trend remains intact.
AUD/USD reaches key SMA resistance
AUD/USD has rallied into the 200-day simple moving average (SMA) resistance, with the pair turning lower since. That level is marginally above the 76.4% Fibonacci level, thus representing a deep retracement of the $0.7393-$0.6833 sell-off. A break through that $0.7393 level would signal a wider bullish reversal. However, there is still a risk of this market turning around before long.
For now, a further decline does seem likely, yet we need to see a swing low taken out before a more bearish wider picture can come into play. A rally through $0.7295 would signal that the pair is likely to keep on moving upwards towards $0.7393.
IGA, may distribute information/research produced by its respective foreign affiliates 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.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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. Please see important Research Disclaimer.
Please also note that 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
