EUR/USD, GBP/USD, and AUD/USD recovery underway yet hurdles remain

EUR/USD, GBP/USD, and AUD/USD have been recovering after a recent dollar gains. However, with key hurdles up ahead, there are still some questions to answer for bulls.

EUR/USD gains ground from Fibonacci support

EUR/USD has been gaining ground following a period of dollar strength that has seen the pair drop into the 76.4% Fibonacci support level. The rebound from that level has now started to slow, with the pair seeing some signs of weakening.

Crucially, while we have started to see the bulls come into play, there are still questions that need answering for the wider bullish picture to come back into play. Most notably, a rise through the $1.2284 swing-high would bring about a fresh bullish signal. Until then, watch out for potential weakness from this short-term Fibonacci zone of $1.2226-$1.2249.

GBP/USD starts to reverse from key resistance

GBP/USD has been outperforming over the course of this week, with the rise into the prior peak of $1.3703 being completed overnight.

That level is going to be key here, with price already showing signs of potential weakness this morning. As such, the reaction to this level will dictate the state of play here, with a break and hold above that point required to bring a bullish continuation signal.

AUD/USD rebounds from Fibonacci support

AUD/USD has rebounded from the 76.4% Fibonacci support level this morning, with the pair seeing sharp gains yesterday.

However, we have started to see some consolidation given the continued trend of lower highs. That pattern means we will be looking out for a potential break through the $0.7799 swing-high to signal an end of the recent pullback and continuation of the wider uptrend.

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.