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 weaken after recent gains

EUR/USD, GBP/USD and AUD/USD pull back, yet could this provide a potential opportunity for longs?

EUR/USD falling back within rising wedge

EUR/USD has been moving lower over the course of this morning, with the selling ramping up as the Europeans come back to their desks.

However, the recent uptrend does remain in tact despite the bearish rising wedge formation. With that in mind, trendline and Fibonacci support could play a key role if we continue to move lower. A break below $1.0892 would be needed to bring about a bearish picture once more. Until then, such pessimism is reserved for the very short term only.

GBP/USD decline could bring bullish reversal today

GBP/USD has also been easing back overnight, with the price closing in on the 61.8% Fibonacci retracement at $1.2571. Between the 61.8% and 76.4% levels, there is a good chance we will see the bulls come back into play to continue this recent uptrend.

With the lower boundary of a standard deviation channel also providing support, bullish positions are preferred unless we see a break below the $1.2524 swing low.

AUD/USD breaks key support after recent rally

AUD/USD could provide us with a clue of forthcoming price action elsewhere, with the pair dropping through channel and horizontal support this morning. The release of a record decline in the Westpac consumer sentiment reading certainly didn’t help things.

Nevertheless, with the price having broken from its uptrend, further downside looks likely. However, with the stochastic well into oversold territory, a break through the 20-mark could bring a short-term rebound. We would need to see a rise back through $0.6445 to bring about a renewed bullish outlook.

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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