FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The dollar is in control as EUR/USD, GBP/USD, and AUD/USD look set for further declines.
EUR/USD declines show potential for further downside
EUR/USD has finally broken lower over the course of the week, with a drop into Fibonacci support at $1.1165. The ability to break through that 76.4% level will be key to determining whether we are going to continue this downward move.
The wider context does point towards further losses coming into play before long, yet it makes sense to look for a break below $1.1165 to signal impending downside as the pair moves towards the crucial $1.1135 swing low.
GBP/USD declines into support zone
These declines have taken the price into a confluence of support, with the $1.2779 low from February joined by a descending trendline dating back to January. This looks like a prime place for the pair to rebound and post some form of retracement. Whether that will come into fruition or not remains to be seen, but this area of support is certainly key for determining where we go from here.
AUD/USD continues to decline as elections loom
AUD/USD has seen a week of consistent declines, with the pair hitting a four-month low today. With the election taking place over the weekend, we are likely to see further volatility to come.
However, while we could see some form of retracement, a break through $0.6933 would be required to negate the bearish trend that is in play over the short term.
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