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

USD weakness and some hawkish comments from the ECB’s chief economist have caused a recovery in key currency pairs. 

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EUR/USD rises on hopes of end to QE

Steady gains continue here for EUR/USD, thanks to some comments from the European Central Bank’s (ECB’s) chief economist regarding quantitative easing (QE).

As a result, the buyers remain in charge, with $1.1822 and then $1.1915 being the near-term levels to watch. Support is likely around $1.1717.

EUR/USD chart

GBP/USD bolstered by bullish momentum

Here too, the buyers are driving GBP/USD higher, with $1.3550 in their sights as a first target.

Dips towards $1.3330 should find buyers. It will need a move back below $1.33 to suggest the downward move from April is back on again.

GBP/USD chart

AUD/USD returns to key trendline

We have reached an interesting point for AUD/USD, as it rallies to the rising trendline from the December 2016 lows, which it fell below in late April.

If this previous support becomes resistance, we may see the price turn lower and push further in the direction of $0.7519. A close above $0.7680 recovers the trendline and could signal a broader revival. 

AUD/USD chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.