EUR/USD, EUR/GBP and AUD/USD come off this week’s highs
Outlook on EUR/USD, EUR/GBP and AUD/USD amid month-end US dollar shorts profit taking.
EUR/USD comes off its near four-month high
EUR/USD comes off Wednesday’s four-month high at $1.1017 despite German retail sales rebounding from a 0.8% drop in September and beating forecasts of a 0.4% increase.
End of month profit taking on US dollar shorts are pushing the cross back down towards its November uptrend line at $1.0906. Below it, support can be spotted between last Wednesday’s low at $1.0853 and the July low at $1.0834.
A currently unexpected rise above the late June high at $1.1012 and this week’s high at $1.1017 would engage the August peak at $1.1065.
EUR/GBP slips towards October low
Over the last few weeks EUR/GBP has swiftly come off its six-month high at £0.8766 towards its October £0.8617 low.
Given the speed of the recent descent, a fall through £0.8617 looks probable with the late August high at £0.8611 and the early June and mid-September lows at £0.8569 to £0.8568 then being in focus.
The early November low at £0.865 is likely to act as resistance, should a minor rebound be seen at all.
AUD/USD stalls in 3 ½ month highs
AUD/USD's rise to its 3 ½ month high at $0.6676 has given way to a minor correction which may take the cross back down towards the 21 November high and the 200-day simple moving average (SMA) at $0.6589 to $0.6581.
While the next lower August and September highs and last Wednesday’s reaction low at $0.6522 to $0.6511 hold, the medium-term uptrend will stay intact.
A rise above $0.6676 would have the early July high at $0.6705 in view.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets