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.

EUR/USD, GBP/USD, and AUD/USD decline could bring buying opportunity

EUR/USD, GBP/USD and AUD/USD ease back, but short-term weakness could bring buying opportunities

EUR/USD turns lower after recent rise

EUR/USD failed to hold on to its gains after a rally back towards the $1.2189 resistance level yesterday, with the pair turning swiftly lower despite a rise in early trade. The break below $1.2081 is not ideal for bulls, although the deep nature of this rebound does point towards a weakening bearish trend.

With the stochastic starting to turn upwards, there is a chance we could see the bulls come back into play over the short-term. However, once again we would need to see a break through the $1.2189 level to negate the recent downtrend that has been in play. With that in mind, while we could see a short-term move higher, there is still a risk of further downside until we break from this bearish pattern.

GBP/USD pullback brings potential buying opportunity

GBP/USD has been easing back overnight, with the pair giving back some of the gains seen so far this week. GBP/USD has been a steady outperformer of late, and that uptrend doesn’t look likely to end here.

With that in mind, this current retracement looks like a potential buying opportunity, with a break below $1.3775 required to negate this bullish view. Until then, further short-term weakness would simply be viewed as a better buying opportunity as we move towards the deeper Fibonacci levels.

AUD/USD weakens into deep retracement

AUD/USD has similarly been on the back foot, with the pair moving lower after a rally into the $0.7805 resistance level. That weakness could be the start of something more troubling, but for now it simply looks like a likely retracement and buying opportunity.

With that in mind, bullish positions are favored here, with a break back below $0.7718 required to negate this bullish view. ​

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.