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.

Weakness expected for EUR/USD, GBP/USD and AUD/USD

Dollar strength continues to drive EUR/USD, GBP/USD and AUD/USD, with all three expected to fall further.

EUR/USD downtrend likely to continue

EUR/USD saw sharp losses yesterday, as the downtrend seen throughout the past nine days continues. The rise seen overnight has already been erased, pointing towards a likely continuation of this downtrend.

With that in mind, a break below $1.0955 would signal the beginning of another bearish phase. Until then, the consolidation/retracement can continue. This wider bearish trend remains in play unless we see a rise through $1.1189.

GBP/USD downtrend remains in play as sellers step in again

GBP/USD upside seen yesterday appears to have short-lived, with the pair moving lower yet again today. The key to seeing another leg lower is whether we see a break below the $1.2002 support level.

We are ultimately expecting to see that breakdown occur, yet will need to see a break below the prior low to confirm the end of this retracement phase.

AUD/USD sell-off continues after rising towards trendline

AUD/USD has dropped into another multi-year low today, with yesterday’s gains proving short-lived. The dollar gains we have been seeing are unlikely to reverse yet, and thus we look set for further downside from here.

A bearish outlook thus remains in play, with a break through trendline and $0.6029 resistance required to negate this view.


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