EUR/USD, GBP/USD, and AUD/USD at risk of a bearish turn
EUR/USD, GBP/USD and AUD/USD gain ground, yet remain at risk of a bearish reversal from here.
EUR/USD rallies into resistance after Friday surge
EUR/USD has been regaining ground since Friday's low, with the pair rising back into a notable confluence of previous peaks and troughs. That $1.2053 level has proven to be a step too far as things stand.
However, should we break through that level we will be looking at a potential push towards the $1.2099-$1.2133 zone. Ultimately, the wider retracement still remains in play irrespective of whether we see the price break through the $1.2053 level. Instead, the price would have to break $1.219 to bring a bullish outlook back into play.
GBP/USD starts to weaken after recent rise
GBP/USD has been on the rise after sharp declines through much of last week. However, we have seen an impressive recovery that takes us back towards the $1.3758 resistance level.
A break through that level would negate the recent wedge breakdown seen in the pair. However, with the stochastic rolling over and the price starting to weaken, there is a good chance we start to see this rally run out of steam. As such, while a break through $1.3758 would bring about a fresh bullish signal for the pair, there is a chance we start to roll over from here.
AUD/USD gains ground, yet questions remain
AUD/USD managed to rally up through the $0.7648 resistance level on Friday, with the pair pushing into the 200-simple moving average (SMA) indicator this morning.
That raises questions once again, with a break through $0.7704 required to negate the current bearish formation. With the pair starting to weaken around the 200-SMA and 76.4% Fibonacci levels, there is a good chance we see the pair turn lower from here. That bearish view is negated with a move through $0.7704.
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