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 weakness expected before long

EUR/USD, GBP/USD and AUD/USD expected to break lower despite short-term gains.

EUR/USD decline likely to persist

EUR/USD has been on the slide over the past week, with a break below trendline support giving way to a phase of lower highs and lows. That remains in play despite the marginal gains seen in early trade today.

Given the shallow slant on this chart, there is a strong possibility that this is a temporary rise that will ultimately resolve in another leg lower for the pair. A break through $1.1123 would be required to negate this bearish outlook.

GBP/USD consolidates within recent pullback

GBP/USD has been easing lower over the course of the past week, with markets trying to ascertain whether we are actually going to avoid a no-deal by the end of the month. With an extension highly likely, we could see some upside come into play.

However, we are yet to see that occur and thus further downside remains a distinct possibility for now. The price has been respecting a short-term trendline support, and thus it is worth watching for a break below $1.2804 to signal the beginning of the next leg lower. A break through $1.295 would be required to bring the bullish outlook back into play.

AUD/USD on the rise from support level

AUD/USD weakness has taken the pair into the $0.6811 support level once more. That comes above the 50% retracement level, pointing towards the possibility of further downside.

However, for now there is a good chance we will see the pair move back towards trendline resistance. Despite the chance of short-term gains, we would need to see a break through the $0.6836 level to bring about a wider bullish picture once more.

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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