EUR/USD, GBP/USD, and AUD/USD on the rise in early trade
EUR/USD, GBP/USD, and AUD/USD regain ground in early trade, yet questions remain as to whether Brexit-fueled gains are reliable enough.
EUR/USD pushing higher after latest retracement
The retracement into the 76.4% Fibonacci level seen last week provides us with a signal that the current move higher is likely to break through $1.2174 in a bid to continue the current uptrend. With that in mind it makes sense to look out for further gains, with a bullish outlook in place unless we see a break back below the $1.205 lows from last week.
GBP/USD rallies into Fibonacci resistance on Brexit hopes
GBP/USD has rallied back into the 76.4% Fibonacci support level, following on from a weekend of Brexit negotiations that saw both sides agree to further talks. Given the risk that the Sunday deadline ultimately drew a line under talks, there is at least a glimmer of hope that they could find an agreement ahead of the year-end deadline.
That hope has led us into Fibonacci resistance, with the reaction to this $1.3397 level (76.4%) likely to be key. A break through the $1.3478 swing high would bring about a move confident bullish outlook, yet there is still significant risk that we create another lower high and turn lower from here.
AUD/USD expected to maintain uptrend
AUD/USD has found resistance at the $0.7572 level following a turn higher in early trade today. With a clear uptrend in play here, it does look likely we will soon enough see another multi-year high for the pair.
As such, it makes sense to look for bullish positions, with a break through $0.7572 providing such a signal. Once such a breakout occurs, stops below the prior swing low (currently $0.752) look attractive as we seek further upside for this consistent performer.
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