EUR/USD struggles while GBP/USD holds support and AUD/USD tiptoes higher
The euro continues to fall against the dollar, while the Aussie is finally rising, but for how long?
EUR/USD unable to rally
If you look up ‘false dawn’ in the dictionary, you will see a picture of the current hourly EUR/USD chart. The surge seen in the final two days of January promised a break higher, but strong rallies this week have been met with a wall of selling.
At present the price has continued to hold support at $1.10, but if it succeeds in stemming the downside for a fourth time in as many months it will be a remarkable achievement. Further losses target the late-September low at $1.0884. An early rebound this morning has run into selling at $1.101, continuing the downtrend of the past few days.
GBP/USD heads back to support
Upward progress in GBP/USD has been distinctly lacking too, as the rally yesterday turned sour.
However, the price continues to hold the $1.2976 level, as it has since mid-January, providing some hope of a possible rebound. Yesterday also saw support develop at $1.294, so this is another level to watch in the event of a move lower. A bigger decline heads towards $1.2773.
AUD/USD makes tentative rebound
The AUD/USD approached, but did not quite hit, support at $0.667.
A rebound has seen daily stochastics provide a bullish crossover, with the moving average convergence/divergence (MACD) potentially following suit over the coming sessions. Whether this bounce has any further to run, then the one at the beginning of January remains to be seen. Intraday, dips may remain buying opportunities, but a more firmly bullish view requires a move back above $0.678, the peak from Wednesday and the 29 January lower high.
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.