Dollar strength continues to drive EUR/USD, GBP/USD and AUD/USD lower
EUR/USD, GBP/USD and AUD/USD continue to move lower, with bearish trend likely to continue as we close out the week.
EUR/USD respects Fibonacci resistance after Wednesday pop
That move higher brought us into the 76.4% Fibonacci resistance level at $1.1754, which is an initial resistance level to consider. A beak up through the $1.1769 level brings about the potential for a wider retracement of the $1.1908 to $1.1706 move. As such, a bearish view holds, with a rise through $1.1769 pointing towards a greater potential for near-term upside.
GBP/USD continues to move lower after support break
GBP/USD has continued its path lower following the break below $1.3843 on Tuesday.
The break through $1.391 in late July does highlight the strong chance that this current pullback is a short-term move before the price turns upwards once again. However, a bullish signal comes with an exit from this intraday trend of lower highs. Thus, for now, a rise through $1.3888 would bring the bulls back into play. Until then, further downside looks a strong possibility.
AUD/USD at risk of another sell-off as price approaches support
AUD/USD has turned back down towards the key $0.7316 support level, following a 61.8% Fibonacci retracement in the wake of a downside trendline break.
That means we could soon see the wider bearish trend kick in once again, with a break below $0.7316 to $0.7289 signaling a continuation of that negative outlook.
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