EUR/USD, GBP/USD and AUD/USD gains could be fleeting
EUR/USD, GBP/USD and AUD/USD gain ground amid dollar decline, yet bears likely to return before long.
EUR/USD starts to weaken after recent rally
EUR/USD has been regaining ground for much of the week, with the price starting to weaken after hitting the 76.4% Fibonacci retracement level at $1.1284.
The downtrend in play over the course of the last three weeks points towards a potential move lower from here, where a break below $1.1245 brings about a bearish confirmation.
GBP/USD regains ground, yet bearish wider picture remains
GBP/USD has managed to break through the $1.254 swing high this week, bringing about a greater chance of a bullish phase coming into play for this pair.
The wider bearish picture remains in play despite the possibility of a short-term bullish picture playing out. For the short term, a rise through $1.2571 would provide greater confidence over the possibility of a bullish phase. However, that would be deemed as a retracement of the $1.2783-$1.244, before the bearish picture returns. Alternatively, a decline below $1.2509 would be required to see the bearish picture emerge once again.
AUD/USD gaining ground amid dollar weakness
AUD/USD has been making up ground off the back of a sharp decline at the beginning of the week.
Coming off the back of a rally into trendline resistance, we look to be retracing that wider $0.7048-$0.691 decline. Look for whether we can start reversing lower from this deep resistance zone, where the 76.4% Fibonacci resistance ($0.7015) provides a key level to watch out for. While we could see further upside come into play over the short term, there is a wider bearish picture that looks likely to resurface before long.
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.