EUR/USD and GBP/USD falter but AUD/USD holds its ground

Pessimism has hit EUR/USD and GBP/USD, but AUD/USD has managed to hold its ground despite growing risk aversion.

EUR/USD selling resumes

Euro bears remain firmly in control, as the EUR/USD price rebounds from an overnight low but begins to decline once more – the overnight bounce stalled at $1.0965, and from here we may see a push below $1.094 and then down to $1.087.

A close above $1.10 would be needed to revive a more bullish view, and would target the 50-day simple moving average (SMA) at $1.1053.

GBP/USD drops below 50-day MA

The GBP/USD price broke below the 50-day SMA ($1.2257) yesterday, and looks set to continue its decline towards the August lows at $1.20.

The failure of the push above $1.236 last week confirmed the preponderance of selling pressure, and would suggest that any sustainable rally requires a move back above $1.24.

AUD/USD holds recent gains

The AUD/USD rally from the lows of last week suffered a bout of volatility yesterday, but arguably it is still intact, having seen support develop around $0.673.

If this continues to hold then a push towards $0.677 comes into play, followed up by the $0.6828 level. A move below $0.672 begins to reverse the bullish impression and would put last week’s lows at $0.677 into play.

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.