EUR/USD, GBP/USD, and AUD/USD rebound into key resistance levels

EUR/USD, GBP/USD and AUD/USD gain ground, but will recent declines signal the potential for another move lower?

EUR/USD rallies back into inside trendline resistance

EUR/USD has been regaining ground overnight, with the pair rising back into an interesting trendline that could put downward pressure on the pair.

The recent decline back into the low of $1.1698 points towards a potential end to the recent uptrend, especially given this rally has taken us into a long-term descending trendline on the monthly timeframe. With the price having rallied into the confluence of an ascending trendline and Fibonacci resistance (61.8%), there is a risk that we could see the pair turn lower from here. As such, it makes sense to watch for a potential bearish reversal from here, with a break through $1.1909 required to bring about a fresh bullish outlook.

Until then, the reaction to this resistance zone will be key in signalling whether we are on the cusp of another leg lower.

GBP/USD rallies back towards key resistance level

GBP/USD has been on the rise overnight, with the pair moving towards the crucial $1.3107 resistance level.

Given the recent trend of lower highs, there is a good chance we will see the pair turn lower from here. That being said, the proximity to this swing high means we need to turn immediately or else risk negating the recent bearish signal. As the stochastic seeks to break back below the 80 threshold, a break below that point would signal a potential bearish sell signal given the success of previous such crosses.

AUD/USD rebounds back towards Fibonacci resistance

AUD/USD has managed to break back into the 76.4% Fibonacci resistance level this morning, with the pair attempting to break higher from here.

We are ultimately looking for a rise through the $0.7227 level to negate the recent break below $0.7121 that raised questions about the directional bias. As such, watch for a breakdown from this Fibonacci level, or else a rise through $0.7227 to signal the directional bias for the day.


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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.