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

Both EUR/USD and GBP/USD are challenging key support levels today, following a period of downside. Meanwhile, AUD/USD upside looks unlikely to last.

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Will EUR/USD bounce from key support level?

EUR/USD has continued its decline this week, with the price threatening to break below the crucial $1.1713 support level.

Should that occur, it would negate the wider bullish trend that has been in play since early November. Alternatively, the ability to break back up above $1.1811 would be key as a driver of upside for the pair. 

EUR/USD price chart

GBP/USD attempting to break key support

GBP/USD is similarly attempting to break out of its recent uptrend, with the price challenging the key $1.3320 support level. This would point towards a protracted move into the dollar and away from the pound, with the next key support level coming at $1.3221.

However, for that to occur, we would need a convincing break below $1.3320. Until then, there is still a possibility of a bounce, with a break above $1.3380 bringing a more bullish outlook.

GBP/USD price chart

AUD/USD retracing within bearish trend

AUD/USD has been regaining ground this week, with the price rallying back towards the deeper Fibonacci retracements.

This period of upside is unlikely to last given the wider downtrend, and as such it makes sense to look for shorting opportunities. The 61.8-76.4% retracements look particularly attractive for shorts. Ultimately we would need to break back above $0.7654 to negate this bearish outlook.  

AUD/USD price 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.