EUR/USD, GBP/USD and AUD/USD look set for further downside
EUR/USD and AUD/USD turning lower, with potential for further declines to come.
EUR/USD turning lower after recent consolidation
EUR/USD has been in consolidation mode over the course of the past week. We have seen the 200-day simple moving average (SMA) resistance level respected throughout the course of the week, and it has come into play once again on Friday.
With the pair now moving back into $1.1167 support, a break below there would bring about a bearish picture for the coming days. As such, as long as we remain above that $1.1167 level, consolidation can continue. However, a break below there would point towards downside to come.
GBP/USD starts to regain ground after breakdown
GBP/USD sold off sharply over the course of Friday, finally bringing the move that had been expecting throughout much of the past week.
With the pair turning higher, it looks like we are at the beginning of a new retracement phase. As such, further gains would bring about a good selling opportunity for the pair, where a bearish picture is in play unless we see a rise through the $1.2182 swing high.
AUD/USD turning lower from resistance zone
AUD/USD managed to rally into a crucial resistance zone last week, yet the failure to push through the $0.6827-$0.6831 zone provided a bearish picture for the upcoming period. Those levels are two historical lows, which now provide resistance for the pair.
With the price turning lower from around that area, there is a good chance that we will see further downside over the short term. Conversely, a break through $0.6831 would be required to bring about a more bullish picture.
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