FX levels to watch – EUR/USD, USD/JPY, AUD/USD

The euro has finally paused for breath against the dollar, while the USD/JPY downtrend is gaining momentum. 

euro notes
Source: Bloomberg

EUR/USD bullish outlook seems to persist

After big moves higher over the past three days, it is not surprising to see EUR/USD pause for breath. However, so long as it holds above $1.10, the key resistance from earlier in the month that is now support.

Given that there has been very little in the way of retracements over the past few days, this move is to be welcomed. The bullish outlook persists, with upside targets at $1.1141 and $1.1279, unless we see a daily close below $1.10.

USD/JPY - moving below ¥111.68?

USD/JPY downside case is gathering strength here, with yesterday’s rally creating a new lower low on the hourly chart, together with a firm break below hourly support at ¥113.20.

Now we look to see if the price can move below ¥111.68, which would put it back at the 50-day simple moving average (SMA). Rallies back towards ¥113 should be taken as selling opportunities. 

AUD/USD - more bearish movements?

AUD/USD has hovered between $0.7380 and $0.7440 for several days, with the apparent rally off $0.7340 running into trouble.

The sharp drop today may well spark more bearish movements, but the bounce last week off the post-January 2016 rising trendline would mean that we need a close below $0.7340 to get firmly bearish.A recovery back above $0.7440 would signal more gains to come, towards $0.7473 and higher.


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