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 break resistance but questions remain

EUR/USD, GBP/USD, and AUD/USD gain ground amid dollar weakness, but will this move prove short lived?

Video poster image

EUR/USD rallies through Fibonacci resistance

EUR/USD has been on the rise of late, with the pair moving up through the confluence of 200-day simple moving average (SMA) and 61.8% Fibonacci resistance on Friday.

From a wider perspective, there is still a good chance the current rise is a retracement before we see the pair form another lower high. As such, the 76.4% resistance level at $1.1045 represents an important area to watch today, with a rise through that point raising the likeliness that we could be heading into the key $1.1917 swing high. A break through there would negate the wider downtrend that has been playing out since the $1.2011 peak from 1 September.

However, for now there is still a good chance that trend continues, with a move lower likely before long. In particular, a break back below the recent low of $1.1733 would provide a fresh bearish signal for the pair.

EUR/USE price chart Source: ProRealTime
EUR/USE price chart Source: ProRealTime

GBP/USD breaks resistance to complete inverse head and shoulders

GBP/USD managed to break through the key $1.3007 resistance level on Friday, bringing the completion of an inverse head and shoulders formation.

That break points towards a likely bullish phase from here, with a break back below the $1.2845 level required to negate that outlook. However, with the stochastic rolling over, there is a chance we could see a short-term pullback from here.

GBP?USD price Source: ProRealTime
GBP?USD price Source: ProRealTime

AUD/USD rallies into confluence of resistance

AUD/USD has rallied into a confluence of trendline and SMA resistance, with momentum starting to wane from this key zone.

The pair managed to rise sharply over the latter part of last week, with the pair posting a fresh two-week high. That rise has taken us into a deep retracement of the decline from $0.7345. A rise up through that prior peak would negate this current downtrend.

However, until that break occurs, there is a risk of us moving lower once again. The reaction to this zone will be key in determining sentiment as we move forward, with a rise through $0.7265 (76.4%) resistance heightening the potential of a bullish break.

AUD/USD price chart Source: ProRealTime
AUD/USD price 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.