EUR/USD and GBP/USD drift lower, while AUD/USD resumes range

EUR/USD and GBP/USD drift lower after recent gains, while AUD/USD trades back in a familiar consolidation zone.

EUR/USD consolidation continues after recent declines

EUR/USD has been in consolidation mode over the course of this week, coming off the back of prior losses.

There is a good chance we could see the price rise from here to post another upward retracement, yet we would need to see a break through the $1.1114 resistance level to bring that view into play. To the downside, watch out for a break below $1.1066 to bring about a bearish continuation signal.

GBP/USD turns lower from key resistance

GBP/USD saw a ramp up in volatility yesterday, with the pair surging back into Friday's high of $1.2175. We are seeing the price turn lower since, yet that break into a new high signals the potential for further upside.

Ultimately, we are trading within a period of great uncertainty, with a vote of no confidence expected in early-September likely to guide the direction for the pound in the future. For now, the price does still trade within a wider bearish trend, with a rally through $1.221 required to negate that trend. However, with the rise above $1.2175, there is a good chance that we could see further upside to come, where a break below $1.2064 would be required to bring a more confidence bearish picture.

AUD/USD back into consolidation range

AUD/USD declines have proven somewhat short-lived, with the breakdown below $0.677 bringing little significant downside.

Instead, we have seen the price rise back into that same $0.677-$0.6795 range, with both support and resistance being respected. With that in mind, watch out for the breakout through either of those two levels, where consolidation is expected to continue until such a breakout occurs.

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.