Dollar strength driving EUR/USD, GBP/USD and AUD/USD lower
EUR/USD, GBP/USD and AUD/USD head lower, with key support coming into play as the dollar looks to return to strength.
EUR/USD tumbles back into a key support
EUR/USD ended the week in somewhat dramatic fashion, with the pair tumbling back into the $1.1752 support level to cap off a week of declines.
The ability to break below this level, will be a key in determining where we go from here, with a break lower providing a bearish continuation signal. Alongside a wider bearish pattern in place over the course of June and July, a move below $1.1752 would point towards an extension of this downtrend.
GBP/USD falls back down through 76.4% support
GBP/USD has also taken a hit towards in the end of last week, with the pair falling down below the 76.4%, Fibonacci support level after respecting it all week.
That raises the likeliness of a more notable break back below $1.3843 support, which would end the recent trend of higher lows. As such, while the recent move lower does raise the likeliness of a bearish move coming into play, we need to see $1.3843 support taken out to bring a more reliable bearish signal into play.
AUD/USD falls back into key support
AUD/USD dropped back below trendline support on Friday, with the price falling back into the key $0.7329 support level. The general lack of momentum within this recent recovery does point towards a potential impending breakdown.
With the price finding buyers around this level, there is a good chance we will see a short-term rebound. However, there is a distinct risk that we see the price fall back into and below $0.7329. Should that occur, we would be looking at a continuation of the bearish trend seen over the course of the past two months.
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
Live prices on most popular markets
- Forex
- Shares
- Indices
