EUR/USD, GBP/USD and AUD/USD move lower in early trading
Losses continue in EUR/USD and AUD/USD, while cable is looking to push on after spiking in Monday’s session.
EUR/USD still in short-term downtrend
Yesterday saw EUR/USD remain under pressure, with the early move higher slowly giving way over the rest of the session.
Further declines below Friday’s low of $1.1016 confirm the downtrend and open the way to the October low of $1.0877. A rebound above $1.104 might help to revive a more bullish view, and might suggest the creation of a higher low on the daily chart.
GBP/USD eases back from Monday spike
Monday witnessed a rally in GBP/USD, as election news drove the price higher.
Some of those gains have been given back, and if further declines push the price below $1.277, then more downside seems likely. If the price can hold above the 50-hour simple moving average (SMA) of $1.2825, then a move back to $1.29 may result. The inability of yesterday’s bounce to hold above $1.286 is a negative development.
AUD/USD heads towards support
AUD/USD has shed some ground over the past two weeks, but it is rapidly heading towards horizontal support at $0.6828 and rising trendline support just below this.
This trendline has held since the beginning of the month, and may provide some support. A close below this and below the 50-day SMA ($0.6816) would be a potentially negative development. However, if the price can hold above it and create a higher low then a fresh push higher may result, targeting $0.693 and the November highs.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
