All trading involves risk. Losses can exceed deposits.

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

The euro’s brief bounce has subsided, while the Aussie is hoping to break higher and continue its January rally.

All trading involves risk. Losses can exceed deposits.

EUR/USD bears maintain their grip

Yesterday's EUR/USD rally to $1.20 was rapidly countered by heavy selling, which suggests further downward pressure will materialise.

Earlier in the week, $1.1915 acted as support, so a push through here opens the way to $1.1850 and then $1.1725. However, before this is reached the rising trendline from the November lows comes into play. 

EUR/USD price chart

GBP/USD aims for a rebound

Sterling weakness has dominated over the past few days, so we continue to look for more downside for GBP/USD, even within the context of a broader uptrend.

As the price pushes lower, $1.3466 and then $1.3341 come into play. However, the uptrend remains intact, so any higher close would be regarded as creating the new higher low that points towards a fresh rally. 

GBP/USD price chart

AUD/USD aims for a breakout

Dip buyers got their chance yesterday, as the price for AUD/USD fell back to $0.7807, before moving on.

An attempt to move above the highs from earlier in the month was defeated overnight, but a close above here would put fresh momentum into the uptrend, with $0.7897 and then $0.7939 coming into view. 

AUD/USD price chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.