EUR/USD, GBP/USD and AUD/USD surge as dollar declines
EUR/USD, GBP/USD, and AUD/USD push upwards as the dollar ultimately suffers in the wake of Jerome Powell’s Jackson Hold appearance yesterday.
EUR/USD turning higher after Powell volatility
EUR/USD seems to have finally broken from the consolidation phase that has dominated the past week, with the pair ultimately heading higher after initial volatility yesterday.
Nevertheless, the prospect of longer-term easing from the Federal Reserve (Fed) has ultimately provided a boost for the pair, with the price looking likely to break through $1.1965 and follow up on the mid-August breakout. Given the 76.4% Fibonacci retracement since, there is a strong chance we will see an upward move from here. As such, a bullish outlook is in play, with a break back below the $1.1762 level required to negate that view.
GBP/USD hits fresh eight-month high
GBP/USD has tentatively broken through the $1.3284 level this morning, hitting the highest level since December 2019. The price is pulling away from that level now, but we will be looking for a bullish continuation from here if the price can hold above $1.3284.
Ultimately, we are looking at a well established uptrend here, and that remains in play despite yesterday's initial failure to back up the Chair of the Fed, Jerome Powell, dollar decline. As such, further upside looks likely, with a break below trendline and $1.3053 support needed to break from this outlook.
AUD/USD breaks from consolidation phase
AUD/USD has managed to break into a fresh 20-month high this morning, with the pair following up on the latest trendline rebound. The break through $0.7204 provided a short-term double bottom formation, and the rest is history.
With a standard deviation channel drawn on, we can see that this rally could soon become overstretched and bring about a fresh pullback to continue the trajectory over the past two months. However, such a move would simply look to provide a retracement within a wider uptrend. As such, a bullish outlook remains in play as long as we remain above $0.7135.
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.