CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

EUR/USD, GBP/USD and AUD/USD rebound, yet questions remain given bearish trends

EUR/USD, GBP/USD and AUD/USD on the rise, but questions remain over whether we are simply retracing or reversing.

EUR/USD rolling over after latest retracement

EUR/USD has been trending lower over the course of the past month, with the dollar strength driving weakness for the pair.

With that downtrend still in play, the latest move higher looks likely to represent a retracement before we head lower once again. A such, a bearish outlook holds unless the price rises through $1.164 resistance.

GBP/USD pauses within Fibonacci resistance zone

GBP/USD has been regaining ground of late, with the pair moving up through the 61.8% Fibonacci level, and into the 100-day simple moving average (SMA).

However, with a bearish trend in play of late, we are looking at a potential retracement here. As such, there is a risk we reverse lower despite recent gains, with a decline through $1.3544 bringing greater confidence of a bearish move. That downtrend remains in play unless the price breaks through the $1.3751 swing-high.

AUD/USD rallies into key resistance level

AUD/USD has generally outperformed European currencies of late, and the rally into $0.7315 is indicative of that.

The pair no longer creates lower highs. Thus, there is a chance we are bottoming out here. With the price turning lower, we would need to see a break below the $0.7225 support level to bring about a fresh bearish signal once again.

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.

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