FX levels to watch: EUR/USD, GBP/USD and AUD/USD
EUR/USD, GBP/USD, and AUD/USD are showing signs of a bullish reversal, with the dollar coming under pressure after the recent surge.
EUR/USD rebounding from long-term trendline
EUR/USD has been turning higher from trendline resistance following a European Central Bank (ECB)-fuelled decline last week.
The wider inside trendline points towards a potential short-term resurgence from here, with the pair expected to see further upside to come. A break below $1.1223 would point towards a possible bearish shift. However, until then further upside looks likely.
GBP/USD decline unlikely to last
GBP/USD has been declining sharply over the course of the past two weeks, with markets selling the pound in the face of Brexit uncertainty.
However, in all likeliness we are looking at an Article 50 extension which should take some of the heat off the pound. Given the wider uptrend in play over the beginning of the year, a bullish turnaround looks likely before long, with a break below $1.2773 required to negate this bullish outlook.
AUD/USD trading back at key resistance level
AUD/USD has managed to rally into the notable $0.7054 resistance level this morning, marking the potential end of a bearish period for the pair. The drop into and below trendline support could have highlighted a potential for another sharp leg lower from here.
However, that has not come to fruition yet, and with a break through $0.7054, it looks likely we will see a period of upside come into play - even if that is just to kick off a retracement of the $0.7207 sell-off.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
