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

AUD/USD looks for another potential move lower following yesterday’s gains, while EUR/USD consolidation and a GBP/USD retracement could set us up for decent moves in Europe.

Euro notes
Source: Bloomberg

EUR/USD consolidating after recent rally

EUR/USD is trading within a triangle formation following on from last week’s French election-fueled rally. The break through $1.0906 provided us with a confirmation of the wider uptrend, and as such even if we did sell off from here, it would look like simply being a correction within that trend.

For a bearish short-term view to come into play, we would need an hourly close below $1.0851. Conversely, an hourly close above $1.0950 would point towards another leg higher within the current uptrend. 

GBP/USD in short-term pullback

GBP/USD has weakened at the beginning of the week, with price almost back to the 50% Fibonacci level.

The key here is that until we see price break below $1.2756, it looks as if this current weakness will be a short-term move before we push higher once more.

As such, the 61.8-76.4% retracement zone ($1.2805-$1.2861) looks particularly interesting for longs.

AUD/USD turns lower from resistance confluence

AUD/USD rallied into trendline resistance yesterday, as the pair looked to retrace some of the losses seen last week. With price having rallied into trendline resistance, there is a good chance we will see this pair turn lower once more from here.

Given that this move came into the 76.4%, we have seen a nice deep retracement. Essentially, while we remain below $0.7584 it looks likely we will turn lower once more to continue the downtrend in place since the March top.

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