EUR/USD, GBP/USD and AUD/USD looking at risk over short term
EUR/USD, GBP/USD and AUD/USD all shows signs of potential short-term weakness. However, will we see the bullish emphasis return before long?
EUR/USD heads lower after brief pause
EUR/USD is heading lower once again this morning, with the pair trading at the 61.8% retracement following a break below $1275.
That move below the prior swing low points towards further downside to come, with the 76.4% retracement level coming into view ($1.1236). The wider uptrend remains in play until we see a break below $1.1181. While further downside looks likely for the near term, there is still a good chance that the bulls will come back into play before long.
GBP/USD declines into Fibonacci support ahead of services PMI
GBP/USD has been under pressure this week, following a sharp decline in the construction and manufacturing purchasing managers index (PMI) surveys.
Today is the big one, with the services PMI figure expected to have a material impact on sterling this morning. The technical picture still remains somewhat optimistic for now, with the prior break through $1.2763 seemingly paving the way for a bullish phase to take shape. A break below $1.2506 would negate that bullish signal, yet it will be interesting to see how we react to this 76.4% Fibonacci retracement area. The low of the day also tallies up with the late-May low of $1.2559. As such, a break below this area of support would point towards a potential move into and below the $1.2506 lows. However, with the services PMI impending, watch out for how the pair reacts to this support zone.
AUD/USD rally looking at risk
AUD/USD has been climbing off the back of a sharp decline on Monday, with a record trade surplus figure overnight helping that recovery.
However, coming off the back of a substantial bout of upside at the back end of June, it looks likely that we will soon see this market continue lower once again. A rally through $0.7031 would negate such an idea, yet the current rally into the 61.8% looks likely to falter once more for a deeper retracement to come 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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.