EUR/USD, GBP/USD and AUD/USD move up to recover losses
Renewed USD weakness has allowed the euro, sterling and Aussie to make back some lost ground from earlier in the week.
EUR/USD reverses bearish move
Sellers seemed to have gained the upper hand with EUR/USD yesterday, with the continued retreat from Monday’s highs. Some early gains this morning have helped to stabilise the situation for the buyers but overall the broadly gloomy tone remains firmly in place.
While daily stochastics have now rolled over with a bearish crossover, the price is testing rising trendline support from the late November low. A move below $1.1265 would confirm a bearish view.
GBP/USD surge shows no sign of slowing
The counter-trend bounce in cable goes on here with GBP/USD, as the price pushes on back towards the 100-day simple moving average (SMA) at $1.3558. Bearish hopes were dashed yesterday with the solid move higher, which continues today and suggests we could see further strength into the second half of the week.
Of course, this is still a bounce from an overstretched lower low, so any lower high below $1.374 would still leave the downtrend intact.
AUD/USD edges higher
After Monday’s losses AUD/USD rebounded yesterday, but it remains stuck below the 50-day SMA ($0.7241) for the time being. A drop back below $0.72 would reinforce the bearish view and help reaffirm the potential of Monday’s drop to create a lower high.
Further gains above $0.7277 would put a move back to the early November swing high at $0.7364 in view.
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.
