Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

​EUR/USD, GBP/USD and AUD/USD looking likely to gain ground

EUR/USD, GBP/USD and AUD/USD look set for further upside following short-term pullbacks.

EUR/USD rallies back into Fibonacci resistance

EUR/USD has seen a relatively volatile 24 hours, with initial losses reversing into another spike higher for the pair. With previous weakness coming around the 76.4% Fibonacci retracement level of $1.1055, the question of whether we can break through this level or not will be key today.

Ultimately, we would need to see a break through $1.1111 to bring about a more bullish outlook, and until then it makes sense to look for potential weakness here. That being said, a break below $1.099 would provide us with a more convincing bearish sell signal.

GBP/USD easing back after another sharp rally

GBP/USD is in consolidation mode this morning, as the pair settles off the back of yet another sharp rally. With the Brexit talks reaching a crescendo, volatility lies ahead. However, with UK Prime Minister Boris Johnson clearly in favor of a Brexit deal, there is likely to be further upside for the pound despite current talks running out of time.

The worry for markets is the possibility of a no-deal Brexit, and Johnson's recent action highlight a willingness to shift his position to bring about an orderly exit. As such, further upside seems likely before long, with the current pullback looking like a retracement. A break below the $1.2516 level would be required to bring about a more bearish picture.

AUD/USD pulls back into Fibonacci support

AUD/USD has been weakening from the 61.8% Fibonacci resistance level of $0.6809 this week. However, with short-term higher highs in play, the pullback into 76.4% support at $0.6734 brings about an interesting crossroads.

A rally from here could bring a deeper retracement, yet a break below $0.671 would signal that wider bearish picture coming back into play from here.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

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