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

A big day dawns for cable as UK data and the latest BoE meeting dominate.

Australian dollar
Source: Bloomberg

EUR/USD misses out on $1.19

Steady gains remain the order of the day here, although the sharp spike to $1.19 has been knocked back for now.

A shallow overnight retracement has brought EUR/USD back to the 50-hour simple moving average (SMA) at $1.1830, from where it may continue to find support. It would still need a move below $1.1714 to even begin to suggest that the rally has run its course.

GBP/USD faces a potentially volatile day

Services PMI, the Monetary Policy Committee (MPC) meeting and the inflation report mean that today could be volatile for GBP/USD.

Over the past two days, gains around $1.3230 have been hard to sustain, but with the uptrend still strong, a dip back towards $1.31 should provide another potential buying opportunity. 

AUD/USD heading towards support?

The price action of the past month has centred around $0.7950 at AUD/USD. The drop over the month so far could continue towards support at $0.7877.

A rally from here would need to clear $0.8065 to suggest more upside is on the way. 

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.