Dollar strength stifles gains in EUR/USD, GBP/USD and AUD/USD

Risk appetite remains subdued, as we have seen with the falls in EUR/USD, GBP/USD and AUD/USD.


EUR/USD falls below 200-day SMA

EUR/USD has slipped below the 200-day simple moving average (SMA) as the outlook for the European Union’s (EU’s) virus response continues to worsen.

Overall, the selling pressure continues to make itself felt, and opens the way to much more downside in the direction of $1.162, with a more bullish view requiring a move back above $1.194 to suggest a bigger recovery is in play.

GBP/USD still under pressure

Continued losses mean that, at best, GBP/USD needs to recover $1.385 to provide an indication that a low has formed.

Otherwise, the ongoing risk-off move now targets $1.35 as it moves below $1.37, key support from January. However, a short-term bounce after two days of sharp losses may simply attract more sellers.

AUD/USD struggling

The travails of risk assets continue to be amply demonstrated here, as AUD/USD drops to its lowest level since the beginning of February.

If it can hold here as it did then, a more bullish view may emerge, although it will require a recovery above $0.77 to cement this view. Further declines look likely with a loss of $0.755.

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.