EUR/USD, GBP/USD and AUD/USD at risk of another turn lower
EUR/USD, GBP/USD, and AUD/USD show signs of potential weakness, with the dollar likely to come back into prominence despite recent rebound.
EUR/USD continues to consolidate after rally into resistance
EUR/USD has been consolidating below the $1.1754 resistance level, with the pair looking likely to decline in a continuation of the topping pattern seen over recent weeks.
While we are currently on the rise this morning, we would need to see a break through trendline and $1.177 resistance to bring expectations of further upside. Until then, there is a good chance this current consolidation is a precursor to further downside. A break below the $1.1684 level would provide that sell signal.
GBP/USD continues to grind higher towards key resistance
GBP/USD has been steadily grinding higher over the past week, with that rise taking the pair back towards the $1.3007 resistance level.
A break through that level would bring a signal that the September downtrend is over. While we could continue to move higher here, it makes sense to look for a break through $1.3007 to confirm expectations that this rise will continue.
AUD/USD continues to climb but further downside could come
AUD/USD has been regaining ground over the past week, with the pair seemingly retracing the $0.7345-$0.7005 declines seen in late September.
With that in mind, the current rise may not last too long with the price having already rallied into the 61.8% Fibonacci retracement. While another turn lower looks likely, it makes sense to await a break below the most recent swing low to bring about a bearish signal.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.