​EUR/USD, GBP/USD and AUD/USD likely to decline again

EUR/USD, GBP/USD and AUD/USD looks set for another bout of downside despite overnight gains.

EUR/USD moves back towards trendline resistance

EUR/USD has managed to marginally regain ground overnight, with the pair rising back towards trendline resistance. This short-term downtrend does still remain intact, albeit at a slower pace than that seen last Friday.

Thus, while a break through the $1.1018 mark would signal a potential bullish phase coming into play, the expectation is that we will see another leg lower from here.

GBP/USD breaking lower after overnight gains

The weakness seen yesterday appears to have set GBP/USD on a bearish phase, despite overnight gains. The shallow nature of upside seen overnight points towards a likely next leg lower which appears to be occurring this morning.

Watch for a break below $1.2899 as a bearish signal, with the stochastic also highlighting an imminent shift in that direction. Should that break occur, look at the 61.8% and 76.4% Fibonacci levels as potential downside targets ($1.2874 and $1.2856).

AUD/USD rally provides selling opportunity

AUD/USD managed to break lower after the recent consolidation, with the price ultimately hitting a one-month low after breaking below $0.6768. With the price moving higher this morning, there is a strong chance that this is a retracement before we see another leg lower.

Watch out for a recent trendline to potentially provide resistance, while Fibonacci resistance lies above that point. Ultimately a bearish outlook remains in play unless we see a break through the $0.6796 swing high established on Tuesday.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

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

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.