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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

​​Weaker dollar allows gains for EUR/USD, GBP/USD and AUD/USD​

Higher UK inflation has bolstered the pound against the dollar, while the euro and Aussie are also making gains versus the US currency.

AUD Source: Bloomberg

​​​EUR/USD back at trendline resistance

EUR/USD continued to rally from the lows of the week, but it remains below trendline resistance.

​​A close above $1.06 might trigger a short-term bullish view, though the $1.063 level which acted as resistance last week may stifle further progress to the upside. A continued failure to move above recent resistance would then see the price move back towards $1.05 and $1.045.

​​Above $1.063 the price might yet move back towards the declining 50-day simple moving average (SMA).

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

​GBP/USD higher after CPI data

​Higher UK inflation helped the pound to rise against the dollar, though the overall bearish in view in GBP/USD remains unchanged.

​​Additional gains target trendline resistance from the July highs, which would come into play towards $1.23, which lies near the highs from last week.

​​Sellers will be on the lookout for any move back below $1.212, which could open the way to the lows seen at the beginning of the month.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

​AUD/USD gains for a third day

​The $0.63 level has held as support twice this month for AUD/USD, and the price continues to rally from this level.

​​However, gains last week were capped by the declining 50-day SMA, along with trendline resistance from the earlier highs of September. A failure to move on above $0.642, and might then see the price head back to $0.63.

​​A close above $0.645 is needed to suggest a more durable near-term move to the upside has begun.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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.

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