EUR/USD, GBP/USD, and AUD/USD struggle to break higher
EUR/USD, GBP/USD, and AUD/USD struggle to break higher, with volatility in wider market sentiment feeding through into the FX space.
EUR/USD heads lower once more
EUR/USD has been heading lower after a rebound into the 61.8% Fibonacci resistance level on Wednesday. With the pair back below the 76.4% Fibonacci level this morning, there is a risk of a wider reversal if we see a break below the $1.2058 swing low.
Until we see that level break, it makes sense to follow the short-term trend which is currently bearish. As such, further weakness is expected unless we see a break through the $1.2222 swing high.
GBP/USD struggles to break through key resistance
GBP/USD rallied into the crucial $1.3704 resistance level once again yesterday, with the pair turning lower for the third time in two-weeks. A rise through that resistance level would bring about a bullish continuation signal.
However, with price falling back, there is a chance we are retracing ahead of another push into resistance. With that in mind, sentiment will be dictate by whether we break through either $1.3612 or $1.3704.
AUD/USD falls back towards key support
AUD/USD has been attempting to break out from its recent consolidation phase, with bulls hoping the recent push higher will provide a bullish breakout through $0.782. However, with price falling back towards the $0.7721 swing low we are looking at a potential bearish short-term signal if price breaks below that point.
With that in mind, this current pullback could be either a retracement or precursor to a bearish signal. As such, whether we break $0.7721 or not will tell us a lot about how sentiment shapes up as we head into the weekend.
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.
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
