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

GBP/USD leads the way higher, at a time when the dollar is showing mixed signs across the board. Meanwhile, a rally in AUD/USD looks unlikely to last.

Euro notes
Source: Bloomberg

EUR/USD consolidation continues

EUR/USD is continuing to trade sideways, following a rally into the 76.4% retracement on Monday. The long standing downtrend remains intact despite the gains over the past month. Thus it is worthwhile noting that we could soon start seeing the pair turn lower.

A bullish medium term outlook would only come with a break through $1.0874. In the meanwhile, watch out for a potential break below $1.0710 for a bearish short-term signal. 

GBP/USD continues to gain ground

GBP/USD is pushing higher once more, with precious few major resistance levels to contend with. This looks likely to continue, with a break back below $1.2491 required to undermine this recent rally.

To the upside, watch out for resistance at $1.2728 and $1.2775. Until then, it makes sense to buy on dips.

AUD/USD rallies into Fibonacci resistance

AUD/USD has managed to regain some ground overnight, rallying into the 76.4% retracement before turning lower. Given the trendline break and push below the $0.7553 level yesterday, this rally looks like a precursor to further downside.

As such, a bearish view is in play unless we see a break back above $0.7609.

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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.