Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD, and AUD/USD head lower, but will recent bullish trend return?

The dollar comes back into favour as risk-off sentiment drives EUR/USD, GBP/USD and AUD/USD lower.

Video poster image

EUR/USD seeks to stabilise after trendline decline

EUR/USD has been hit hard over the course of the past 24-hours, with fears around Nancy Pelosi’s visit to Taiwan bringing some haven demand back into play for the dollar. The recent gains for EUR/USD had brought the price back into trendline resistance, which roughly correlates with the location of the 200-simple moving average (SMA) indicator.

With that in mind, there is a good chance we see the price roll over in the direction of the wider trend here. With the stochastic reversing upwards from oversold, there is still a chance we rebound here though.

As such, it makes sense to watch for a break below the $1.0096 level before looking for bearish positions. Until then, there is still a chance we see the bulls come back into play to push the price towards trendline resistance once more.

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

GBP/USD falls back into trendline support

GBP/USD has drifted lower over the start of this week, despite the intraday uptrend playing out over the course of the past three-weeks.

The recent turnaround from the 76.4% resistance region highlights how we also have a wider bearish trend worth considering, with a push up through $1.2406 required to negate that negative pattern. Until that takes place, it makes sense to look out for a continuation of this bullish trend unless we are shown otherwise.

With that in mind, this trendline is expected to bring another bullish phase here, with a decline through $1.2063 required to bring about a fresh bearish outlook.

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

AUD/USD breaks down through key support level

AUD/USD has been hit hard this week, with the Reserve Bank of Australia (RBA) rate decision doing little to bolster the Australian dollar.

Crucially, we have seen the price decline through key $0.6911 support overnight, bringing an end to the intraday pattern of higher lows. That raises the likeliness that we are due a bearish phase from here, with a renewed push up through the $0.7046 swing high required to bring the recent bullish pattern back into play.

Until such a break occurs, any short-term upside would look like a precursor to the pair turning lower in the direction of the wider trend.

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

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.