Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD, GBP/USD, and AUD/USD head lower, but will recent bullish trend return?

The dollar comes back into favour as risk-off sentiment drives EUR/USD, GBP/USD and AUD/USD lower.

EUR/USD seeks to stabilise after trendline decline

EUR/USD has been hit hard over the course of the past 24-hours, with fears around Nancy Pelosi’s visit to Taiwan bringing some haven demand back into play for the dollar. The recent gains for EUR/USD had brought the price back into trendline resistance, which roughly correlates with the location of the 200-simple moving average (SMA) indicator.

With that in mind, there is a good chance we see the price roll over in the direction of the wider trend here. With the stochastic reversing upwards from oversold, there is still a chance we rebound here though.

As such, it makes sense to watch for a break below the $1.0096 level before looking for bearish positions. Until then, there is still a chance we see the bulls come back into play to push the price towards trendline resistance once more.

GBP/USD falls back into trendline support

GBP/USD has drifted lower over the start of this week, despite the intraday uptrend playing out over the course of the past three-weeks.

The recent turnaround from the 76.4% resistance region highlights how we also have a wider bearish trend worth considering, with a push up through $1.2406 required to negate that negative pattern. Until that takes place, it makes sense to look out for a continuation of this bullish trend unless we are shown otherwise.

With that in mind, this trendline is expected to bring another bullish phase here, with a decline through $1.2063 required to bring about a fresh bearish outlook.

AUD/USD breaks down through key support level

AUD/USD has been hit hard this week, with the Reserve Bank of Australia (RBA) rate decision doing little to bolster the Australian dollar.

Crucially, we have seen the price decline through key $0.6911 support overnight, bringing an end to the intraday pattern of higher lows. That raises the likeliness that we are due a bearish phase from here, with a renewed push up through the $0.7046 swing high required to bring the recent bullish pattern back into play.

Until such a break occurs, any short-term upside would look like a precursor to the pair turning lower in the direction of the wider trend.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market.

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.