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

Potential reversals for the likes of EUR/USD, GBP/USD and AUD/USD point towards a possible period of weakness for the dollar.

anonymous

Publication date : 2017-09-29T10:04:03+0100

Australian dollar

Source: Bloomberg

EUR/USD showing signs of bottoming out

EUR/USD is regaining ground this morning, with the pair showing signs of a bullish reversal after recent losses. The $1.1804 -$1.1810 resistance zone is going to be important as a hurdle which, if overcome, could pave the way for a period of upside.

As such, look out for an hourly close above $1.1810, which if achieved would provide a bullish outlook. Should that occur, a break below $1.1772 would be required to negate that bullish view.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD pullback likely to be fleeting

GBP/USD has been pulling back overnight, following a sharp move higher yesterday. Given the failure to break through $1.3464, there is less confirmation of a bullish reversal than would be preferred. Yet with the pair heading higher from the 61.8% retracement, it looks as though we could be seeing just that.

An hourly close above $1.3454 would provide a bullish confirmation, given the creation of higher lows and highs. As such, the directional bias will be greatly influenced by the break out of the $1.3343-$1.3454 zone.

GBP/USD chart

GBP/USD chart

GBP/USD chart

AUD/USD reversal looking to take shape

AUD/USD has regained its composure following a drop into a crucial long-term support zone. With the pair now respecting the $0.7835 level, there is a strong chance that we will see a move higher from here. In particular, an hourly close above $0.7860 would provide a bullish confirmation signal.

A break back below $0.7799 would certainly be a big warning sign, yet for now there is confidence in the strength of $0.7835 support given both recent and historical respect of this level.

AUD/USD chart

AUD/USD chart

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.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

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