FX levels to watch: EUR/USD, GBP/USD and AUD/USD
A surge for the dollar has seen EUR/USD, GBP/USD, and AUD/USD all turning lower in early trade. With key support levels down below, further short-term downside could have wider implications.
EUR/USD reverses lower after recent ascent
EUR/USD looks to have completed its period of upside, with the break below trendline support pointing towards a possible return of the wider bearish trend.
The upside seen throughout much of last week always looked like a potential retracement of the selloff from $1.1514. As such, a bearish outlook is in place unless we see a break through the $1.142 peak seen yesterday.
GBP/USD drifts lower after recent ascent
GBP/USD has been moving lower in the second half of the week, with the pair returning to the $1.3218 peak from late January.
The ability to break through the recent swing-low of $1.3233 and that $1.3218 peak will be key in determining whether this retracement is going to be fleeting, or longer lasting.
AUD/USD falls into key support
AUD/USD has continued its decline, following a rally into the 61.8% retracement level earlier in the month. The failure to create a new higher high, and subsequent fall below $0.7142 points towards a likely continuation of the wider bearish trend, which appears to be playing out.
However, the final hurdle remains, with a break below $0.7070 key to determining whether we are back into that bearish wider trend or post another higher low. Should we see that level broken, we would likely see another leg lower from here.
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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
You might be interested in…
Find out what charges your trades could incur with our transparent fee structure.
Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.