EUR/USD, GBP/USD and AUD/USD decline into critical support levels
The dollar is coming back into prominence, with EUR/USD, GBP/USD and AUD/USD all falling towards crucial bearish breakdown levels.
EUR/USD approaching key support level
EUR/USD saw a sharp decline in the second half of the week, with the price declining towards the crucial $1.1263 support level.
The lows we have seen thus far tally up roughly with trendline support and the 76.4% Fibonacci retracement. However, with the price consolidating in a similar manner to that seen yesterday, a break below the $1.1268 low would look likely to bring a move back into that critical $1.1251 swing low. Such a move would bring about a wider bearish picture, yet until that occurs the uptrend remains intact.
GBP/USD looking at risk of bearish reversal amid decline into key support
GBP/USD has declined towards the crucial $1.2653 level, in a move that could pave the way for another significant decline for the pair.
With the recent rally failing to push through the $1.2763 swing high, a decline below the $1.2653 level would pave the way for further downside from here.
AUD/USD breaks key support as the pair continues to come under pressure
AUD/USD has continued its decline, with the breakdown below $0.6963 providing a bearish signal that has played out throughout this week.
The break below $0.6898 provides us with a signal that points towards a wider bearish picture coming back into play. With the price seemingly trading within a falling wedge pattern, a rise through $0.6918 would bring expectations of a short-term rebound. However, until that happens further declines seem likely.
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.
This information/research prepared by IGA or IGA Group is intended for general circulation. 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 or 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. In addition to the disclaimer above, 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.
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.