FX Levels to Watch – EUR/USD, GBP/USD, AUD/USD

Continued dollar weakness has given EUR/USD, GBP/USD and AUD/USD space to rally, but can they keep up the good work?

Dollar and pound
Source: Bloomberg

EUR/USD rally goes on

EUR/USD finds itself back above the 50-day simple moving average (SMA) at $1.1847, marking a significant recovery from the lows of a week ago. The next area to watch would be $1.19, and then above here the September peak around $1.21.

Momentum looks potentially overstretched on the four-hour chart, and move back below $1.1830 would signal a more bearish development. 

GBP/USD faces a crucial moment

For GBP/USD too, the rally off the lows has been impressive, but the pair finds itself stuck below the highs of last week at $1.33. A failure to push on from here would suggest a fresh selling opportunity has developed.

Meanwhile, above $1.33 the $1.3450 level comes into play, and then the September highs around $1.3650.

AUD/USD looks to recent highs

AUD/USD continues to clamber higher, with its eye on the highs of last week at $0.7877.

A failure to take out this high will create a new lower high, with the bears then targeting the $0.7748 low from the beginning of this week. Above $0.7877, the 50-day SMA at $0.7913 comes into focus. 

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.