EUR/USD, GBP/USD and AUD/USD expected to decline further
EUR/ USD, GBP/USD and AUD/USD continue to look bearish, with marginal gains for the likes of GBP/USD and AUD/USD doing little to negate the wider trend.
EUR/USD declines continue following break below key support
EUR/USD has been in bearish mode since Wednesday’s break below the critical $1.1167 support level. While we previously managed to break through the $1.1188 swing high, the wider bearish trend remains in play.
Ultimately it seems the 200-day simple moving average (SMA) provided sufficient resistance to halt those recent gains, with the pair moving back into a bearish phase in line with the wider bearish trend. There is a chance that this is just a retracement of that recent $1.1027-$1.1249 rally. Yet with the price already declining below the 61.8% level, further losses could see the 76.4% Fibonacci broken, bringing expectations of a further drop back towards $1.1027.
As such, the key will be whether we respect that 76.4% level or not ($1.1079). It will be a gauge of whether we start to turn higher or head into the August low of $1.1027.
GBP/USD continues to grind higher within downtrend
However, the wider downtrend remains intact despite this short-term rebound, with yesterday's rally being capped at the 76.4% retracement level ($1.2143). Ultimately, we will need to see a break through the $1.2182 level to negate this bearish trend. Until that happens, further downside looks likely.
AUD/USD turns lower after overnight rally
AUD/USD has been gaining ground overnight, with the pair seemingly retracing off the back of a previous decline below $0.6745.
While the gradual nature of this current intraday decline could mean an ultimate push higher, a bearish picture remains in play for the time being. This would reverse with a break higher, where a push through $0.6818 would bring a more bullish outlook.
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.