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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

EUR/USD, GBP/USD and AUD/USD expected to fall once gain

EUR/ USD, GBP/USD and AUD/USD look set for further losses, with recent gains proving fleeting.

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EUR/USD consolidates after recent rebound

EUR/USD has been consolidating off the back of a sharp rebound over the past week. Coming into trendline and 200-day simple moving average (SMA) resistance, there is a chance we could see the pair start to turn lower.

However, it is worthwhile watching for a break below the $1.1167 low set yesterday. Alternately, a rise through the $1.1249 level would be required to bring about a more bullish picture.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD rally unlikely to last, after Fibonacci resistance is reached

GBP/USD managed to rise into the 76.4% Fibonacci resistance level yesterday, marking the top of a short period of gains for the pair.

The sharp losses coupled with the shallow and slow nature of this rise means we are expecting to see the sellers come back in before long. Thus, given the respect of the 76.4% level, it is likely we are going to turn lower from here, with a rise through $1.225 required to negate this bearish outlook.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD declines after RBNZ cut, with any rebound unlikely to last

AUD/USD declined sharply overnight, following a 50 basis point cut from the Reserve Bank of New Zealand (RBNZ). That has ramped up expectations of a Reserve Bank of Australia (RBA) rate cut in September, rising from 46.7% to 66.7%.

That decline came after the pair had respected trendline resistance, with the break below an ascending trendline ultimately seeing another leg lower for the pair. We are now seeing a rise coming into play, yet such a move would likely be another retracement and precursor to further losses. As such, while we could see further upside over the coming hours, that would look like a selling opportunity unless we see a break through the $0.6801 swing high.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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