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 starts to regain ground, while GBP/USD and AUD/USD hit trendline support

EUR/ USD and GBP/USD declines, yet downside could be limited. Meanwhile, we await a breakout from AUD/USD consolidation.

EUR/USD starts to stabilise after recent losses

EUR/USD has been on the back foot for much of last week, with the pair declining below the 76.4% Fibonacci retracement level on Friday.

However, we are starting to see some bullish price action take shape, with the potential for an inverse head and shoulders formation. A break through the $1.1106 resistance level would be required to bring such a bullish outlook for the short term. Alternatively, we would need to see the price decline below $1.1066 to bring about a renewed bearish outlook.

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

GBP/USD falls back into trendline support

GBP/USD has been on the rise for much of last week, with the cross-party plans to avoid a no-deal Brexit providing a boost to sentiment.

This morning we are seeing a sharp decline back into trendline support, coming off the back of a rally into the 76.4% Fibonacci resistance level. Given the wider bearish trend, there is a chance we are seeing the beginning of a bearish phase for the pair. However, we are yet to see confirmation of that bearish picture reemerging, with a break below $1.2077 required to bring such a view. To the upside we need to see $1.221 broken to bring a new bullish outlook for the pair.

GBP/USD chart Source: ProReaTime
GBP/USD chart Source: ProReaTime

AUD/USD consolidation likely to bring bearish breakdown

AUD/USD has been consolidating over the course of the past five trading days, with the 200-day simple moving average (SMA) providing a crucial indicator to cap any downside.

The recent trend has been one of lower highs and lower lows, pointing towards another bearish move coming into play before long. Given the tight nature of this consolidation, a breakout from this symmetrical triangle would be easy to read, with a small stop-loss utilised in response. As such, a bearish picture comes back into play with a break below $0.6772, while a rise through $0.679 would bring about a more bullish outlook.

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.