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 decline towards key support levels

EUR/USD, GBP/USD and AUD/USD continue to lose ground, yet key support levels remain unbroken.

EUR/USD consolidating around key support level

The EUR/USD declines have slowed markedly this week, with the recent decline taking the pair within close proximity to the hugely significant $1.1181 support level.

A break below that level would activate a wider bearish picture to tally up with the weakness seen in the short term. However, until that level is broken, there is a chance we could see the pair gain ground. In particular, look out for $1.1219 and $1.1234 as the initial signals that we could begin bottoming out.

GBP/USD continues to trend lower

GBP/USD has been experiencing a more consistent downtrend this week, with the declines taking price back towards the crucial $1.2435 support level. This comes off the back of a drop below the $1.2506 level, signifying a continuation of the downtrend evident throughout recent months.

Ultimately, should we manage to break below $1.2435, it would heighten the chance of a significant drop for the pair, as the price breaks into a new two-year low. To the upside, we would need to see a rally through $1.2540 to bring about a more bullish short-term view.

AUD/USD continues to decline after drop below key support

AUD/USD has been in freefall this week, after a rally into trendline resistance was followed up by a drop below the critical $0.6956 support level. That pointed towards a topping off in the pair, with the price on the slide ever since.

The rally through $0.7021 signals a potential bullish picture coming into play, yet much of that has been undone by fading optimism over US-China talks, and the strong US payrolls number. However, there is still a chance we are in retracement mode, and it is worth watching our response to the 61.8% Fibonacci support level, and subsequent 76.4% level ($0.6882). Looking at the short-term trend, this bearish picture remains in play unless the price breaks through $0.6933.


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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