FX levels to watch: EUR/USD, GBP/USD and AUD/USD
A surge for the dollar has seen EUR/USD, GBP/USD, and AUD/USD all turning lower in early trade. With key support levels down below, further short-term downside could have wider implications.
EUR/USD reverses lower after recent ascent
EUR/USD looks to have completed its period of upside, with the break below trendline support pointing towards a possible return of the wider bearish trend.
The upside seen throughout much of last week always looked like a potential retracement of the selloff from $1.1514. As such, a bearish outlook is in place unless we see a break through the $1.142 peak seen yesterday.
GBP/USD drifts lower after recent ascent
GBP/USD has been moving lower in the second half of the week, with the pair returning to the $1.3218 peak from late January.
The ability to break through the recent swing-low of $1.3233 and that $1.3218 peak will be key in determining whether this retracement is going to be fleeting, or longer lasting.
AUD/USD falls into key support
AUD/USD has continued its decline, following a rally into the 61.8% retracement level earlier in the month. The failure to create a new higher high, and subsequent fall below $0.7142 points towards a likely continuation of the wider bearish trend, which appears to be playing out.
However, the final hurdle remains, with a break below $0.7070 key to determining whether we are back into that bearish wider trend or post another higher low. Should we see that level broken, we would likely see another leg lower 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.
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.
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.