Dollar weakness gives EUR/USD, GBP/USD and AUD/USD a breathing space
A small reversal in the US dollar has allowed the euro, sterling and Aussie to recover some lost ground.
EUR/USD climbs back above recent low
The hopes of the sellers have been dashed for now as EUR/USD reverses from Friday’s low and stages a two-day rebound that has carried it back towards $1.19.
There is still a lot of ground to recover to put the price back on a more bullish footing, with a rally above $1.194 being a good first step. Sellers will hope that the return of US traders from their holiday can provide the spark for a fresh drop back below $1.188.
GBP/USD recovers $1.38
Having recovered back above $1.38, GBP/USD is attempting to build a more bullish view that may yet take in a rebound to $1.40.
If it can move above this latter level then the bearish view will be firmly cancelled out for the time being, and an eventual move towards $1.42 can be contemplated. Alternatively, sellers will want to see the price reverse and move back towards $1.37.
AUD/USD stages a bounce
As with the other two pairs, for now it looks like AUD/USD's bounce of the past three days has firmly cancelled out the bearish view.
Having rebounded from $0.7473 for a second time in less than a month, the price has now established a firm line that will need to be firmly broken to the downside to renew the bearish view. Buyers now need to clear the vital area around $0.76, which marked resistance in June but was support earlier in the year, in order to create the conditions for a new bigger move higher.
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