​​EUR/USD and AUD/USD break support amid GBP/USD outperformance

GBP/USD looks set to outperform, with EUR/USD and AUD/USD expected to decline further.

EUR/USD decline points towards wider reversal

EUR/USD managed to decline below the $1.1066 support level yesterday, with the pair hitting the lowest level since 2 December. However, more importantly, we saw a break from the uptrend in play since the late-November lows.

This points towards a resumption of the long-term downtrend, with further downside likely from here. As such, a bearish outlook is in play unless we see a break through the $1.1118 swing high.

GBP/USD appears to have bottomed out

GBP/USD managed to break through $1.3119 resistance this week, bringing about a bullish reversal signal following recent declines.

With that in mind, we are looking for further upside from here. A decline below $1.2954 would be required to negate this bullish outlook.

AUD/USD expected to decline following head and shoulders

AUD/USD managed to break below the $0.6838-$0.6849 support zone this week, completing a bearish head and shoulders formation.

With that in mind, it looks likely we will see further downside to come. A break below the $0.6827 level would bring about greater confidence that this next leg lower is coming into play. Until then, the current rise could give way to a wider bullish retracement of the $0.6933-$0.6827 decline.

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.