All trading involves risk. Losses can exceed deposits.

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

Dollar strength continues to be felt, with the sellers in charge in EUR/USD and AUD/USD. 

All trading involves risk. Losses can exceed deposits.

EUR/USD holds support zone

EUR/USD remains close to the $1.22 support area, although it is testing the bottom end of that range.

As yesterday, $1.2165 and $1.2092 remain possible support, and we need to see a push above $1.24 for the pair to create a breakout. Given that yesterday’s bounce was so meagre and is already running into selling, it looks like the sellers remain in charge here.

GBP/USD hits bounce territory

GBP/USD has been similar to EUR/USD in that yesterday’s bounce has fizzled out, although the uptrend over the past year is still intact and stochastics on the daily chart are now in oversold territory.

A bounce could materialise from here, but this would need a move back above $1.4036, the 50-day simple moving average (SMA).

No turnaround in sight for AUD/USD

There will be plenty of hand-wringing among bulls as AUD/USD continues to fall below the long-term rising trendline.

Any bounce that fails to move back above this trendline and the $0.7650 area would likely be a selling opportunity, with a push to the $0.75 level in view.

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.