EUR/USD, GBP/USD and AUD/USD decline, as downtrends remain intact
EUR/USD, GBP/USD and AUD/USD continue to sell off, yet questions remain over the longevity of these moves.
EUR/USD rally brings about bullish short-term possibilities
EUR/USD sold off for much of last week, with the price hitting a two-year low. However, we are seeing tentative signs of strength following Friday’s rally.
For the short term, we have key trendline and horizontal ($1.0959) resistance to overcome. However, with momentum reversing higher off the back of a retracement, such a break could occur. Should we see those levels overcome, it would point towards a wider retracement coming into play. However, until $1.0959 is overcome, the short-term bearish trend remains relevant.
GBP/USD continues to drift lower
GBP/USD has been on the slide since breaking below the $1.2413 and $1.2393 support levels.
That bearish trend looks likely to continue until we see something to tell us otherwise. Thus, the bearish outlook remains in play unless the price breaks through the $1.2331 swing high established on Friday.
AUD/USD declines into key support zone
AUD/USD has moved to the bottom of its recent consolidation zone, with the price breaking through trendline support.
Down below, we have a cluster of Friday’s low, Wednesday’s low, and the 76.4% Fibonacci retracement at $0.6736. A break below this zone of support would serve to provide a bearish continuation signal. It would also raise questions over whether we are gearing up for an ultimate break back down to $0.6687. As such, watch out for how the pair responds to this support zone as a gauge of impending price action.
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
