EUR/USD, GBP/USD and AUD/USD weaken on dollar demand
EUR/USD, GBP/USD and AUD/USD come under pressure as risk-off sentiment helps drive dollar demand.
EUR/USD showing signs of potential impending weakness
EUR/USD is turning lower in early trade today, with the pair looking at risk of a protracted move lower in the coming days. With markets weakening thanks to prospective US sanctions on Chinese individuals, we are seeing dollar demand creeping back in here.
The potential head and shoulders formation highlights that possible weakness, with a break below the $1.2101 level required to bring a wider bearish picture into play. Should that occur, we would be looking at a likely retracement of the $1.1924-$1.2177 rally.
GBP/USD slumps into key support
GBP/USD has seen sharp losses at the start of the week, with the pair moving back into the key $1.3287 support level. A break below that point would negate the recent uptrend, pointing towards a more bearish phase for the pair.
Given the growing fear surrounding Brexit, it makes sense that the pound could come under pressure in the absence of a deal. Thus traders should keep an eye out for whether we break or rebound from $1.3287 as a gauge of where we go from here.
AUD/USD starts to roll over after recent gains
AUD/USD is weakening in early trade today, with price falling below the $0.741 swing low after the European open. With markets coming under pressure, we are also seeing other risk assets come under pressure.
That decline through $0.741 support points towards a wider retracement coming into play, with a pullback into the $0.7365-$0.7381 support looking a distinct possibility. The wider uptrend does remain intact unless we see a break below $0.7339. However, for the near term it looks likely we will see further downside as we provide a retracement of the wider uptrend.
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