Counter-trend dollar weakness unlikely to persist
Short-term upside for the likes of EUR/USD, GBP/USD and AUD/USD has provided a counter-trend move, but the sellers are likely to return.
EUR/USD turning higher from support zone
EUR/USD managed to decline into within touching distance of the $1.1111 support zone in play over the past month.
However, it looks like the pair is now setting itself up for a rebound, with the price breaking higher from a consolidation phase. An hourly close above $1.1143 would raise the likeliness of a rebound from here, with another upward retracement coming into play.
GBP/USD moving higher within recent downtrend
GBP/USD is also seeing some upside come into play this morning, coming amid a remarkably consistent sell-off in the pair. This is likely to be a short-term phenomenon, yet it will come down to whether we see a break through the $1.2641 swing high. Should that occur, a rebound into a wider retracement of the $1.2748-$1.2580 sell-off would come into play.
However, until that break occurs, there is a good chance we are simply retracing the shorter-term $1.2641-$1.2580 move. As such, another leg lower looks likely before long, with a break above that first swing high required to point towards a wider retracement coming into play.
AUD/USD rallies into resistance zone
AUD/USD is moving higher after yesterday’s sharp decline that took the pair into a new low for the week. The pair is currently moving higher once more, yet the sellers expected to return before long.
A rise through the $0.6936-$0.6938 resistance zone would bring about a bullish picture. However, until that happens, we look likely to falter around that area once again today.
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.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
