Dollar strength stifles gains in EUR/USD, GBP/USD and AUD/USD
Risk appetite remains subdued, as we have seen with the falls in EUR/USD, GBP/USD and AUD/USD.
EUR/USD falls below 200-day SMA
EUR/USD has slipped below the 200-day simple moving average (SMA) as the outlook for the European Union’s (EU’s) virus response continues to worsen.
Overall, the selling pressure continues to make itself felt, and opens the way to much more downside in the direction of $1.162, with a more bullish view requiring a move back above $1.194 to suggest a bigger recovery is in play.
GBP/USD still under pressure
Continued losses mean that, at best, GBP/USD needs to recover $1.385 to provide an indication that a low has formed.
Otherwise, the ongoing risk-off move now targets $1.35 as it moves below $1.37, key support from January. However, a short-term bounce after two days of sharp losses may simply attract more sellers.
AUD/USD struggling
The travails of risk assets continue to be amply demonstrated here, as AUD/USD drops to its lowest level since the beginning of February.
If it can hold here as it did then, a more bullish view may emerge, although it will require a recovery above $0.77 to cement this view. Further declines look likely with a loss of $0.755.
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
See more forex live prices
Prices above are subject to our website terms and agreements. Prices are indicative only
