EUR/USD and AUD/USD at key support, while GBP/USD outperforms

EUR/USD and AUD/USD look set for further downside, while GBP/USD breaks higher after recent declines.

EUR/USD continues to drift towards critical support level

EUR/USD remains marginally above the critical $1.1066 support level, following on from a period of declines that have broken both Fibonacci and $1.1085 support.

The long-term outlook remains bearish and we need to see $1.1066 broken to bring that outlook into play for the shorter term. As such, watch for whether we can break that level as a gauge of market sentiment going forward.

GBP/USD breaks resistance amid recent recovery

GBP/USD has managed to follow up its previous bullish break through $1.3097 with a second higher high above $1.3119.

That break came after a deep retracement, yet the inability to break below $1.2954 was telling. Momentum seems to be shifting in the short term, with the stochastic rolling over from overbought. As such, we could see short term weakness, yet that would be perceived as a short-term retracement that can be bought into. Thus, a bullish outlook is in play unless we see a break below the $1.2954 support level.

AUD/USD rebounds after head and shoulders completion

AUD/USD broke below both $0.6849 and $0.6838 support levels yesterday, completing the head and shoulders formation that has been building over the past two months.

This signals further downside to come, although with the price currently rebounding it seems we could be in for a retracement phase first. As such, this rebound looks like a potential shorting opportunity. This bearish outlook holds unless we see a break through the $0.6934 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

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.