FX levels to watch: EUR/USD, GBP/USD and AUD/USD
EUR/USD, GBP/USD and AUD/USD have been declining as they erase previous gains. Is this the beginning of a wider bearish shift?
EUR/USD dropping into critical support level
EUR/USD has continued its decline, with the pair heading into the key support zone of $1.1289 and $1.1301.
If we see the pair break below that level, we are looking at a likely wider breakdown for the pair. As such, watch out for whether or not we break below that zone, with a short-term rebound a distinct possibility until we do see such a break.
GBP/USD drifts lower within more uncertain period
GBP/USD managed to rally through the $1.2979 resistance level on Thursday, with that short-term higher high pointing towards the possibility of further upside to come.
However, with the price drifting lower, we are moving closer to the $1.2854 level which would denote a bearish continuation move. As such, the break through $1.2854 or $1.2996 would signal greater confidence in a bullish or bearish move from here.
AUD/USD drops below critical support level
AUD/USD has been declining sharply throughout the past week, with the price moving below the $0.7076 level on Friday. That negates the bullish trend that had been in play throughout the first six weeks of 2019, with further downside looking likely as a result.
Over the near term, a rally through the $0.7117 level would likely spark a short-term rebound for the pair. Until that happens, the market is likely to continue this period of weakness, with another leg lower looking likely from here.
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.
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.
Please see important Research Disclaimer.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.