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.

Dollar strength driving EUR/USD, GBP/USD and AUD/USD lower

EUR/USD, GBP/USD and AUD/USD head lower, with key support coming into play as the dollar looks to return to strength.

EUR/USD tumbles back into a key support

EUR/USD ended the week in somewhat dramatic fashion, with the pair tumbling back into the $1.1752 support level to cap off a week of declines.

The ability to break below this level, will be a key in determining where we go from here, with a break lower providing a bearish continuation signal. Alongside a wider bearish pattern in place over the course of June and July, a move below $1.1752 would point towards an extension of this downtrend.

GBP/USD falls back down through 76.4% support

GBP/USD has also taken a hit towards in the end of last week, with the pair falling down below the 76.4%, Fibonacci support level after respecting it all week.

That raises the likeliness of a more notable break back below $1.3843 support, which would end the recent trend of higher lows. As such, while the recent move lower does raise the likeliness of a bearish move coming into play, we need to see $1.3843 support taken out to bring a more reliable bearish signal into play.

AUD/USD falls back into key support

AUD/USD dropped back below trendline support on Friday, with the price falling back into the key $0.7329 support level. The general lack of momentum within this recent recovery does point towards a potential impending breakdown.

With the price finding buyers around this level, there is a good chance we will see a short-term rebound. However, there is a distinct risk that we see the price fall back into and below $0.7329. Should that occur, we would be looking at a continuation of the bearish trend seen over the course of the past two months.

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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