​EUR/USD, GBP/USD and AUD/USD declines likely to persist​

EUR/USD, GBP/USD and AUD/USD look set for further declines amid a week of dollar strength.

EUR/USD drops into new two-year low

EUR/USD has declined below the $1.0926 support level this week, with the price falling into the lowest level since May 2017. That continues the wider bearish trend, with further downside highly likely.

At some point we will retrace that wider decline from $1.1111, yet it will take a break through the swing high of $1.0967 to bring about a more bullish short-term picture.

GBP/USD slumps amid calls for future rate cut

GBP/USD has been on the slide this morning, with comments from the Bank of England (BoE) member Michael Saunders signalling that they could cut rates even if a no-deal Brexit were avoided.

That dovish outlook provides us with another leg lower within a week of wider downside. A break through $1.238 would bring about a more bullish picture, yet it looks like we will see further downside in the absence of such a break.

AUD/USD pausing amid recent decline

AUD/USD has been consolidating overnight, with the price pausing off the back of a sharp decline on Wednesday.

With the price falling towards the 76.4% retracement at $0.6736, the ability to break below that level could be key in signalling that this is a continuation of the wider downtrend rather and a bullish retracement. To the upside, a break through $0.6781 would be needed to start building a more bullish picture.

The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.