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 rally, yet questions emerge

EUR/USD, GBP/USD and AUD/USD gain ground, yet key hurdles remain in a bid to maintain a bullish trend.

​EUR/USD rolling over after brief rebound

EUR/USD managed to rebound from the $1.0768 resistance level on Thursday, with the pair seemingly ending a period of significant declines. The ongoing battle between the European Central Bank (ECB) and German Constitutional Court could depress the euro for the time being, although the notion of a restricted quantitative easing (QE) programme should really hold back stocks rather than the currency.

Nevertheless, we are seeing EUR/USD rolling over already, with the stochastic having broken back below the 80 threshold. The key level to watch here is $1.0815, with a break below there signalling a likely next leg lower for the pair. To the upside, a break through $1.0875 would point towards a continuing of this recent rebound.

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

GBP/USD attempts to recover with consolidation zone

GBP/USD has been on the rise since Thursday's low, with the pair remaining within a consolidation phase that has seen the price action restricted to the $1.2247-$1.2647 range for over a month now. Ultimately, we need to see a break through one of those thresholds to signal a way out of this range.

Until then, there is a good chance we continue to regain ground in a bid to return to the upper echelons of this consolidation. To the downside, watch for whether we break the $1.2356 level. Should that occur, it could signal a impending move towards the key $1.2247 low once more.

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

AUD/USD back into key resistance zone

AUD/USD has been on the rise over the course of the past week, with the pair pushing back into the $0.657 resistance level established in late April. That previous peak is also joined by an inside trendline, which has formed both support and resistance over the past month.

With that in mind, we are trading at a crossroads, with a break through this zone of resistance providing us with a signal that this recent uptrend is going to continue. ​

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

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.