Dollar weakness gives EUR/USD, GBP/USD and AUD/USD a breathing space

A small reversal in the US dollar has allowed the euro, sterling and Aussie to recover some lost ground.

EUR/USD climbs back above recent low

The hopes of the sellers have been dashed for now as EUR/USD reverses from Friday’s low and stages a two-day rebound that has carried it back towards $1.19.

There is still a lot of ground to recover to put the price back on a more bullish footing, with a rally above $1.194 being a good first step. Sellers will hope that the return of US traders from their holiday can provide the spark for a fresh drop back below $1.188.

GBP/USD recovers $1.38

Having recovered back above $1.38, GBP/USD is attempting to build a more bullish view that may yet take in a rebound to $1.40.

If it can move above this latter level then the bearish view will be firmly cancelled out for the time being, and an eventual move towards $1.42 can be contemplated. Alternatively, sellers will want to see the price reverse and move back towards $1.37.

AUD/USD stages a bounce

As with the other two pairs, for now it looks like AUD/USD's bounce of the past three days has firmly cancelled out the bearish view.

Having rebounded from $0.7473 for a second time in less than a month, the price has now established a firm line that will need to be firmly broken to the downside to renew the bearish view. Buyers now need to clear the vital area around $0.76, which marked resistance in June but was support earlier in the year, in order to create the conditions for a new bigger move higher.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

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.