EUR/USD, GBP/USD and AUD/USD pause after recent gains
EUR/USD, GBP/USD and AUD/USD have been on the rise, with hopes for a Brexit deal ensuring the pound is an outperformer.
EUR/USD consolidates after Friday’s high
EUR/USD is consolidating once again today, with the pair failing to overcome the high set on Friday. The rally we have been seeing over the course of October looks like a retracement of the sell-off from $1.1111.
With that in mind, the bears are expected to come back into play before long, with the price having rallied into the 76.4% Fibonacci retracement at $1.1055. Indeed, it makes sense to look for short positions, with a break through $1.1111 required to negate this bearish outlook.
GBP/USD remains elevated with further volatility ahead
GBP/USD has been on the rise over the past week, with the pair hitting a three-month high on Friday. For all the hope of a potential Brexit deal, there is also a strong chance that such a deal could fail or prove impossible given time constraints.
Therefore, volatility remains the base case, especially with the UK jobs report this morning. As such, watch out for further news-fueled volatility, with a break through $1.2706 required to bring about a more confident bullish outlook for the short-term. Otherwise, there is a risk of a retracement given the size of recent gains.
AUD/USD starts to weaken after 61.8% retracement
The AUD/USD pair has started to turn lower, following on from a rally into the 61.8% Fibonacci retracement level.
The wider picture remains bearish for this pair, and there is a good chance that this rebound could unravel before long. Confirmation of such a bearish view comes with a break below the $0.6751 swing low. However, it is worthwhile noting that this pair will be highly sensitive to any breakthrough or breakdown in the US-China trade situation.
This information has been prepared by IG, a trading name of IG Markets 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.
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