EUR/USD, GBP/USD and AUD/USD rally towards major breakout levels

EUR/USD, GBP/USD, and AUD/USD rally towards major resistance levels, with breakout required to signal potential bullish continuation.

EUR/USD continues its climb to consolidation resistance

EUR/USD has managed to continue its ascent, with the pair moving back into the top end of a consolidation phase that has been playing out over the recent weeks.

With a long-term descending trendline in place around these levels, we need to see a break through this $1.1916 level to bring about a fresh bullish breakout signal for the pair. Until that happens, there is still a chance we start to reverse lower from here given the importance of this resistance zone.

GBP/USD rallies into major resistance level

GBP/USD has been on the rise overnight, with the pair pushing back towards the crucial $1.3186 level ahead of Brexit talks.

Much like EUR/USD, we have a major multi-year descending trendline coming into play at the top of this consolidation zone. Thus, it makes sense to await a break through $1.3186 if we are looking for longs. Until then, there is a chance we could see the pair deteriorate if such a breakout does not occur.

AUD/USD rebounds from trendline confluence

AUD/USD has continued its rise, following a decline into a confluence of support last week. With the price subsequently pushing through the $0.7188 level, we saw an inverse head and shoulders formation completed to drive us towards the $0.7243 level.

A break through that level would signal a continuation of the wider uptrend, with a fresh 18-month high coming into play. That break does look likely from here, yet it is worth noting that this level is very notable when considering the important resistance in play for EUR/USD and GBP/USD. As such, a break through $0.7243 would bring about a bullish break, pointing towards another leg higher from here.

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.