FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The dollar is coming into the fore in early trade this week, with EUR/USD, GBP/USD, and AUD/USD all looking likely to see further downside from here.
EUR/USD consolidates amid deep retracement
EUR/USD managed to rally into and past the 76.4% retracement last week, with the price continuing to consolidate around that area today.
The ability to break through the $1.1265 is key to determining whether we are seeing the beginning of a wider bullish phase. Until then, there is a good chance we could start to turn lower from here as the price breaks down through trendline support.
GBP/USD turning lower in continuation of recent losses
GBP/USD is weakening once more, following in from a week of downside just gone.
The gains we saw throughout the latter part of last week are seemingly a precursor to further downside, with the pair looking set to break lower. A move below the $1.2991 swing low would provide us with the bearish signal that sends the pair on its way for a likely next leg lower.
AUD/USD falling back into key support level
AUD/USD has been in consolidation mode over the past fortnight, with the pair exhibiting lower highs and largely flatlining lows during that time.
We are seeing a return to that $0.6962 support level this morning, with the reaction to that level likely to prove key to the outlook for the pair. Watch for a break and close below that level to provide a signal that the bearish trend is set to kick in once more. On the flip side, continued respect of that support zone would point towards a rise back into trendline resistance.
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.