EUR/USD, GBP/USD and AUD/USD continue to turn lower

EUR/USD, GBP/USD and AUD/USD continue to weaken, with GBP/USD hitting a new two-year low.

EUR/USD falls towards key support level

EUR/USD declined below the $1.1238 support level yesterday, bringing about a more bearish picture for the pair.

The fall below that level provided us with a short-term double top formation, bringing further upside as a result. However, this has now taken us in towards the next hurdle of the $1.1193-$1.1181 zone. Those levels, if broken, would give way to a wider bearish picture for the pair as it negates the uptrend in play over the past two months. As such, watch out for whether we see such a break as a guide of where we go from here.

GBP/USD falls into two-year low

GBP/USD has seen sharp selling take hold this week, with the pair declining below the critical $1.2435 support level to create a new two-year low.

That points towards a wider bearish picture being in play here, with a lack of support levels signaling the possibility of a ramp up in selling. We have seen another leg lower in early trade, yet we are now starting to see the price rebound in response. With the UK consumer price index (CPI) released this morning, we are expecting to see volatility. Should we see any further upside, watch out for whether we see a break through the $1.242 swing high and $1.2435 historical low. Until that happens, the downtrend remains intact.

AUD/USD starts to turn lower after recent rally

AUD/USD has been drifting lower over the start of the week, coming off the back of a rally towards the $0.7048 resistance level.

This points towards the possibility of a bearish phase coming into play, with the short-term creation of lower highs crucial to such a move. With that in mind, a bearish picture remains in play unless we see a break through the $0.7021 swing high.

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.