Dollar strength driving EUR/USD, GBP/USD and AUD/USD lower

EUR/USD, GBP/USD and AUD/USD head lower, with key support coming into play as the dollar looks to return to strength.

EUR/USD tumbles back into a key support

EUR/USD ended the week in somewhat dramatic fashion, with the pair tumbling back into the $1.1752 support level to cap off a week of declines.

The ability to break below this level, will be a key in determining where we go from here, with a break lower providing a bearish continuation signal. Alongside a wider bearish pattern in place over the course of June and July, a move below $1.1752 would point towards an extension of this downtrend.

GBP/USD falls back down through 76.4% support

GBP/USD has also taken a hit towards in the end of last week, with the pair falling down below the 76.4%, Fibonacci support level after respecting it all week.

That raises the likeliness of a more notable break back below $1.3843 support, which would end the recent trend of higher lows. As such, while the recent move lower does raise the likeliness of a bearish move coming into play, we need to see $1.3843 support taken out to bring a more reliable bearish signal into play.

AUD/USD falls back into key support

AUD/USD dropped back below trendline support on Friday, with the price falling back into the key $0.7329 support level. The general lack of momentum within this recent recovery does point towards a potential impending breakdown.

With the price finding buyers around this level, there is a good chance we will see a short-term rebound. However, there is a distinct risk that we see the price fall back into and below $0.7329. Should that occur, we would be looking at a continuation of the bearish trend seen over the course of the past two months.

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.