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. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD and AUD/USD pause after recent gains​

EUR/USD, GBP/USD and AUD/USD have been on the rise, with hopes for a Brexit deal ensuring the pound is an outperformer.

EUR/USD consolidates after Friday’s high

EUR/USD is consolidating once again today, with the pair failing to overcome the high set on Friday. The rally we have been seeing over the course of October looks like a retracement of the sell-off from $1.1111.

With that in mind, the bears are expected to come back into play before long, with the price having rallied into the 76.4% Fibonacci retracement at $1.1055. Indeed, it makes sense to look for short positions, with a break through $1.1111 required to negate this bearish outlook.

GBP/USD remains elevated with further volatility ahead

GBP/USD has been on the rise over the past week, with the pair hitting a three-month high on Friday. For all the hope of a potential Brexit deal, there is also a strong chance that such a deal could fail or prove impossible given time constraints.

Therefore, volatility remains the base case, especially with the UK jobs report this morning. As such, watch out for further news-fueled volatility, with a break through $1.2706 required to bring about a more confident bullish outlook for the short-term. Otherwise, there is a risk of a retracement given the size of recent gains.

AUD/USD starts to weaken after 61.8% retracement

The AUD/USD pair has started to turn lower, following on from a rally into the 61.8% Fibonacci retracement level.

The wider picture remains bearish for this pair, and there is a good chance that this rebound could unravel before long. Confirmation of such a bearish view comes with a break below the $0.6751 swing low. However, it is worthwhile noting that this pair will be highly sensitive to any breakthrough or breakdown in the US-China trade situation.

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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.8 pips on EUR/USD
  • Analyze market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on the most popular forex markets


Prices above are subject to our website terms and agreements. Prices are indicative only

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 forex provider.

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