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 and AUD/USD gain ground, as GBP/USD turns lower

EUR/USD, and AUD/USD gain ground, yet GBP/USD remains at risk of further losses.

EUR/USD consolidation points towards further upside

EUR/USD has been in consolidation mode over much of the week, with the upside momentum being subdued in the wake of a sharp rally into the 200-day simple moving average (SMA). That indicator has remained crucial over the week, with the price respecting it on four occasions.

However, with the price trading largely sideways, there is a good chance we will see another push higher before long. A break and close above that SMA is needed to provide us with a bullish breakout signal. Alternately, a break below $1.1167 would bring a more bearish short-term picture into play.

GBP/USD gradually reversing lower after Fibonacci resistance

GBP/USD has been gradually reversing lower in the wake of a rally into the 76.4% Fibonacci resistance level on Tuesday. That move lower confirms the wider bearish trend that remains in play for this pair.

Thus, we are expecting that bearish pattern to continue developing, with a break below the $1.2079 level looking likely before long. Conversely, a break through trendline resistance and the $1.2182 swing high would start building a somewhat more bullish picture for the short term.

AUD/USD rallies into key resistance zone

AUD/USD has managed to fight back after a sharp decline in the early part of the week. That rally has taken us through the $0.6801 resistance level, yet we have moved into a crucial resistance zone of $0.6827-$0.6831.

That zone represents a few historical lows, and thus there is a chance we could see it respected once again. With that in mind, the near-term outlook will be dictated by the ability or inability to break through that zone.


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.