EUR/USD, GBP/USD and AUD/USD expected to fall once gain

EUR/ USD, GBP/USD and AUD/USD look set for further losses, with recent gains proving fleeting.

EUR/USD consolidates after recent rebound

EUR/USD has been consolidating off the back of a sharp rebound over the past week. Coming into trendline and 200-day simple moving average (SMA) resistance, there is a chance we could see the pair start to turn lower.

However, it is worthwhile watching for a break below the $1.1167 low set yesterday. Alternately, a rise through the $1.1249 level would be required to bring about a more bullish picture.

GBP/USD rally unlikely to last, after Fibonacci resistance is reached

GBP/USD managed to rise into the 76.4% Fibonacci resistance level yesterday, marking the top of a short period of gains for the pair.

The sharp losses coupled with the shallow and slow nature of this rise means we are expecting to see the sellers come back in before long. Thus, given the respect of the 76.4% level, it is likely we are going to turn lower from here, with a rise through $1.225 required to negate this bearish outlook.

AUD/USD declines after RBNZ cut, with any rebound unlikely to last

AUD/USD declined sharply overnight, following a 50 basis point cut from the Reserve Bank of New Zealand (RBNZ). That has ramped up expectations of a Reserve Bank of Australia (RBA) rate cut in September, rising from 46.7% to 66.7%.

That decline came after the pair had respected trendline resistance, with the break below an ascending trendline ultimately seeing another leg lower for the pair. We are now seeing a rise coming into play, yet such a move would likely be another retracement and precursor to further losses. As such, while we could see further upside over the coming hours, that would look like a selling opportunity unless we see a break through the $0.6801 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.