GBP/USD, EUR/USD and AUD/USD head lower as dollar weakness takes a breather
GBP/USD, EUR/USD and AUD/USD have drifted lower after recent gains. However, with bullish breakouts in play, further upside looks likely before long.
GBP/USD drifting lower after rally into key resistance level
GBP/USD has been gaining ground over the past week, with the pair moving within touching distance of the key $1.2748 resistance level.
A break through that point would bring about a more bullish outlook for the pair. However, we have since been turning lower, with the price having broken through trendline support. Watch for a break below the $1.2642 support level to provide a bearish confirmation signal. Alternately, a rise above $1.2748 brings a bullish short-term bias.
EUR/USD declines back below notable support level
EUR/USD managed to break through the key $1.1263 resistance level earlier this week, providing a rare higher high for the pair.
That points towards a bullish breakout to come, reflecting the dovish shift from the US Federal Reserve (Fed). That breakout failed to hold, with the provision of a huge inverted hammer pointing towards a pullback coming into play. This looks like a retracement of the rally from $1.1116, and the break below $1.1226 signals a good chance that there will be further to come yet. As such, look out for a break through $1.1306 to provide an immediate bullish outlook. However, until then it looks like we will soon turn lower to provide a deeper retracement before turning higher.
AUD/USD turning higher from support level
AUD/USD is finding support following a pullback into the $0.6962 support level.
That level has provided support in early May, and we are likely to do the same here. With the stochastic rising back above the 20 mark, this looks like an interesting area for the bulls to come in again. Alternately, a break back below $0.6962 would look likely to bring a deeper retracement of the rally from $0.6898.
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.