EUR/USD, GBP/USD and AUD/USD expected to weaken further
EUR/USD, GBP/USD and AUD/USD show signs of likely impending weakness, with the dollar expected to gain ground.
EUR/USD declines look set to continue
EUR/USD is suffering as the return of haven demand drives gains for the dollar and yen. This means EUR/USD is certainly at risk given the recent underperformance of the euro in comparison to most of the main currencies.
The shallow retracement seen overnight could provide us with another good entry, with a break below $1.082 acting as a sell signal. Should that break occur, the close proximity of the overnight peak of $1.0866 allows for relatively tight stops. Essentially, if we do break below $1.082, then the bearish short-term outlook would hold until we break the prior swing high of $1.0866.
GBP/USD continues to consolidate despite dollar demand
GBP/USD highlights the relative underperformance of the euro, with the pound holding up well against the dollar. With the price back at a short-term trendline support, we will be watching to see if any breakdown occurs.
Ultimately, we need to see a move below the $1.2244 level to bring about a wider reversal signal for this pair. Conversely, a rise through $1.2475 would be required to bring about a bullish continuation signal.
AUD/USD rise provides Fibonacci shorting opportunity
AUD/USD has regained ground overnight, with the price rising back into the 61.8% Fibonacci retracement level. The recent creation of lower highs and lower lows provides us with a bearish outlook for this pair, with sell positions preferred unless the price breaks through the $0.6119 swing high.
As such, while we could see a deeper retracement towards the 76.4% Fibonacci level, a bearish outlook is in play unless we see that $0.6119 level broken.
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.