EUR/USD, GBP/USD, and AUD/USD decline could bring buying opportunity
EUR/USD, GBP/USD and AUD/USD ease back, but short-term weakness could bring buying opportunities
EUR/USD turns lower after recent rise
EUR/USD failed to hold on to its gains after a rally back towards the $1.2189 resistance level yesterday, with the pair turning swiftly lower despite a rise in early trade. The break below $1.2081 is not ideal for bulls, although the deep nature of this rebound does point towards a weakening bearish trend.
With the stochastic starting to turn upwards, there is a chance we could see the bulls come back into play over the short-term. However, once again we would need to see a break through the $1.2189 level to negate the recent downtrend that has been in play. With that in mind, while we could see a short-term move higher, there is still a risk of further downside until we break from this bearish pattern.
GBP/USD pullback brings potential buying opportunity
GBP/USD has been easing back overnight, with the pair giving back some of the gains seen so far this week. GBP/USD has been a steady outperformer of late, and that uptrend doesn’t look likely to end here.
With that in mind, this current retracement looks like a potential buying opportunity, with a break below $1.3775 required to negate this bullish view. Until then, further short-term weakness would simply be viewed as a better buying opportunity as we move towards the deeper Fibonacci levels.
AUD/USD weakens into deep retracement
AUD/USD has similarly been on the back foot, with the pair moving lower after a rally into the $0.7805 resistance level. That weakness could be the start of something more troubling, but for now it simply looks like a likely retracement and buying opportunity.
With that in mind, bullish positions are favored here, with a break back below $0.7718 required to negate this bullish view.
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