FX levels to watch: EUR/USD, GBP/USD and AUD/USD
A mixed picture across FX is seeing dollar weakness fade for the likes of AUD/USD. However, EUR/USD and GBP/USD are showing signs of the potential further upside.
EUR/USD regaining ground in another retracement rally
EUR/USD is rising in the wake of last week’s sell-off, with the pair seemingly set for another retracement phase.
The wider creation of lower highs and lower lows remains in place unless we see a break through the $1.1324 swing high. Thus, it makes sense to look out for further upside over the near term, with the pair expected to post a deeper retracement of the sell-off from $1.1324. A fall below $1.1145 would signal a continuation of the bearish trend rather than a continuation of this rally.
GBP/USD rallying towards crucial resistance level
GBP/USD is regaining ground after a fortnight of downside which saw a breakdown below the key $1.2963-$1.2967 resistance zone.
This current rally looks like a short-term rebound unless we see a move through that same $1.2963 peak which marks the most recent swing high and the March low. A move above there would point towards a bullish phase as we retrace the decline from $1.3133.
AUD/USD sell-off expected to return
AUD/USD has been regaining ground over recent days. However, with a wider bearish trend in play, there is a good chance that such upside is a retracement phase before we see further downside come into play.
With the price having dropped below the $0.7039 level, it looks likely we will see further downside over the near term. A rally through $0.707 would bring about expectations of further upside and wider retracement coming into play.
This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.8 pips on EUR/USD
- Analyze market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on the most popular forex markets