EUR/USD, GBP/USD and AUD/USD move lower in early trading
Losses continue in EUR/USD and AUD/USD, while cable is looking to push on after spiking in Monday’s session.
EUR/USD still in short-term downtrend
Yesterday saw EUR/USD remain under pressure, with the early move higher slowly giving way over the rest of the session.
Further declines below Friday’s low of $1.1016 confirm the downtrend and open the way to the October low of $1.0877. A rebound above $1.104 might help to revive a more bullish view, and might suggest the creation of a higher low on the daily chart.
GBP/USD eases back from Monday spike
Monday witnessed a rally in GBP/USD, as election news drove the price higher.
Some of those gains have been given back, and if further declines push the price below $1.277, then more downside seems likely. If the price can hold above the 50-hour simple moving average (SMA) of $1.2825, then a move back to $1.29 may result. The inability of yesterday’s bounce to hold above $1.286 is a negative development.
AUD/USD heads towards support
AUD/USD has shed some ground over the past two weeks, but it is rapidly heading towards horizontal support at $0.6828 and rising trendline support just below this.
This trendline has held since the beginning of the month, and may provide some support. A close below this and below the 50-day SMA ($0.6816) would be a potentially negative development. However, if the price can hold above it and create a higher low then a fresh push higher may result, targeting $0.693 and the November highs.
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.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
