​EUR/USD and GBP/USD tumble, while AUD/USD gains look likely to reverse

EUR/USD and GBP/USD are on the slide, with both markets hitting multi-year lows. Meanwhile, AUD/USD gains could be lost amid a wider downtrend.

EUR/USD hits two-year low

EUR/USD has been on the slide, as dollar strength helps drive the pair into the lowest level since 2017. The hourly chart highlights a clear intraday downtrend that is likely to come back into play, despite a bounce this morning.

As a result, bearish positions are preferred, with a break through $1.0975 required to bring about a more bullish outlook.

GBP/USD slumps amid Brexit fears

GBP/USD has seen selling ramp up in anticipation of future volatility, with the prospect of a no-deal Brexit raising fears for sterling bulls. There is plenty of uncertainty ahead, with today likely to be dominated by a vote that could see anti no-deal Brexit MPs wrestle control of the exit process away from the prime minister. Should that pass, we are looking at a likely October general election that will dictate whether we see a no-deal Brexit or not.

For this pair, we are likely to see further downside to come, with the losses seen today taking us into the lowest level since October 2016. Therefore, keep an eye out for this intraday picture, where further losses are expected unless the price breaks through the $1.2077 consolidation high seen yesterday.

AUD/USD rebounds after RBA lowers rate cut hopes

AUD/USD has been on the rise this morning, with the decision reached by the Reserve Bank of Australia (RBA) to maintain rates at 1%. That decision also reduced market expectations of an October cut, to the benefit of the Australian dollar. However, the rebound we have seen in this pair has taken us into a key resistance area, with trendline resistance coming into play.

Crucially, given the recent creation of lower highs, there is a good chance we will turn lower from here, with a rise through $0.6729 required to bring about a new bullish outlook for the short term.

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

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.