EUR/USD, GBP/USD and AUD/USD weaken on dollar strength
EUR/USD, GBP/USD and AUD/USD start to roll over after market weakness provides short-term gains for the dollar.
EUR/USD rebounds into key resistance zone
EUR/USD has been on the rise since the Wednesday lows, with the pair pushing into the 76.4% Fibonacci retracement level.
The key here is that the pair would need to break through the $1.1843 swing-high to signal an end to the recent pullback. However, given the mid-sized retracement seen thus far, there is still another chance of a move lower from this Fibonacci level. As such, the reaction to this Fibonacci level will be crucial in determining the outlook from here.
GBP/USD rebound starts to falter after early gains
GBP/USD gains seen overnight are starting to ease back as the pair gives back some of the gains seen throughout much of November.
Given the mid-sized pullback thus far, there is a good chance we could see further downside from here. The short-term trend of lower highs and lows does point towards this current rise being a potential precursor to further downside. As such, this period of weakness is likely to continue until we see a break through the prior swing high (currently $1.3228).
AUD/USD rolls over after recent resurgence
AUD/USD has started to break lower after a strong run at the beginning of the month.
The decline below $0.7252 brings about a bearish reversal signal for the near term, with the price subsequently trading within a descending channel. A break back up through the prior high of $0.7318 would bring about a fresh bullish signal. However, until then it looks likely we will see further short-term gains to give back some of those recent gains.
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