EUR/USD, GBP/USD and AUD/USD all roll over after recent rise

EUR/USD, GBP/USD and AUD/USD start to ease back as stochastic reversal highlights easing momentum.

​EUR/USD reversing from key resistance zone

EUR/USD gains seen yesterday have taken us back into the $1.0991-$1.1019 resistance zone, with the price turning lower in response. The breakdown below 80 on the stochastic points towards a potential reversal from here, with a rally back above the $1.1018 level required to bring about a bullish continuation breakout signal.

Until then, the two-month range looks likely to persist with another move lower from here.

GBP/USD rebound starts to ease back

GBP/USD rallied into the 50% Fibonacci resistance level yesterday, with the pair easing back since. From a wider perspective, this rally looks like a retracement of the decline from $1.2643.

Whether we see a deeper pullback remains to be seen, yet the break back below 80 on the stochastic highlights a bearish shift in momentum taking hold today. As such, while a bearish outlook is in play, we could see a deeper retracement with another leg higher at some point.

AUD/USD turning lower from major resistance level

AUD/USD rallied into the crucial $0.666 resistance level yesterday, with the pair starting to ease back somewhat overnight. Once again we are looking at a potential bearish shift in price action as the momentum rolls over as indicated by the stochastic oscillator.

Nevertheless, the trend here is clearly bullish, with a short-term pullback only having wider consequences for this uptrend if the price breaks below the $0.6506 level. Until then, there is a good chance we will see another push to break through the key $0.6685 resistance level.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

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.