EUR/USD, GBP/USD and AUD/USD questions remain amid recent consolidation

EUR/USD, GBP/USD, and AUD/USD continue to consolidate, with breakout required to bring more outlook going forward.

EUR/USD turning lower within consolidation phase

EUR/USD is turning lower following a rally into the 76.4% Fibonacci level, with the pair looking set to continue its recent consolidation phase.

Given the fact that this consolidation comes around a long-term descending trendline, there is a possibility that we are looking at topping pattern here. A break below the $1.1711 level would be required to bring such a picture into life. Until we see a break from this recent $1.1711-$1.1916 consolidation phase, opportunities can come in playing the range. With the price breaking through $1.1793 following a rise into Fibonacci resistance, there is a good chance we will see further downside over the short term.

GBP/USD consolidation continues around trendline resistance

GBP/USD is similarly consolidating after a rally into long-term trendline resistance.

That multi-year trendline means we need to see a break through the $1.3186 level to bring about a fresh buy signal for the pair. To the downside, a break below $1.3005 would bring about a bearish reversal signal to build on the recent respect of trendline resistance.

AUD/USD falls back towards trendline support

AUD/USD has weakened back towards an inside trendline, as the pair attempts to create another base to move higher.

The long-term uptrend points towards further upside, but a break through the $0.7190 level would bring greater confidence that such a bullish break is going to occur. Given the recent respect on 76.4% support at $0.7116, that bullish outlook is preferred. To the downside, we would ultimately need to see a break through the $0.7076 level to bring about a bearish outlook.


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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

You might be interested in…

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.