EUR/USD, GBP/USD, and AUD/USD decline towards critical support levels

EUR/USD, GBP/USD, and AUD/USD declines raise the possibility of an impending bearish reversal.

EUR/USD closes in on double top formation

EUR/USD has been declining towards the crucial $1.1696 support level, with the pair at risk of posting a bearish double top formation.

Should that break occur, we would be looking at the potential beginning of a wider bearish phase for the pair. Nevertheless, while we have broken all the Fibonacci levels, there is still a chance of a resurgence until $1.1696 is broken. As such, a bearish outlook comes with a break below $1.1696, while the bullish trend comes back into play on a rise through the $1.1808 level.

GBP/USD weakness brings key support zone into play

GBP/USD has declined into a crucial area of support, with the $1.2981, $1.3009, and $1.3019 support zones key to maintaining the bullish trend that has been in play.

A rally through the $1.3132 level would help build that bullish view once more. However, any further downside and we risk seeing key levels broken that would signal a potential bearish reversal for the pair.

AUD/USD declines into trendline support

AUD/USD weakness has taken the pair back into an inside trendline, with the uptrend coming into question if we see another move to the downside.

Given the wider uptrend and the recent respect of this trendline, there is a chance we will see the pair move higher from here. Such a rally would need to break through the $0.7189 level to add greater confidence that such a resurgence is underway. However, a decline through the $0.7076 level would go a long way to highlighting a wider bearish reversal for the pair.

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.