EUR/USD, GBP/USD and AUD/USD pullback unlikely to last
EUR/USD, GBP/USD and AUD/USD weakness proves brief, with the bulls likely to come back into play.
EUR/USD weakens, yet bulls could yet come back into play
EUR/USD fell below the $1.185 support level yesterday, with the price falling back into the prior resistance level of $1.183 which now provides support.
The original break through $1.1881 did signal the potential for a bullish reversal of the downtrend seen in June and July. Thus, this recent breakdown could yet be a retracement before we head higher once again. With that in mind, watch for the bulls to potentially come back into play here, with a break below the $1.1752 low required to bring a continuation of that bearish trend.
GBP/USD respecting 76.4% Fibonacci support once again
GBP/USD looks to have found support on the 76.4% Fibonacci support level once again, with the pair on the rise from that $1.3876 level in early trade.
With the recent trend of higher lows still in place, this somewhat drawn out retracement phase still does look like a buying opportunity. That bullish view holds unless the price falls below the $1.3843 swing low.
AUD/USD turning higher once again within rising channel
AUD/USD is turning higher once again this morning, following a 61.8% retracement that came after a rise back into trendline resistance. The recent rising channel remains in play here, with the price looking likely to push back up into trendline resistance.
As such, while there is a risk of a breakdown from this channel at some point, we would need to see a decline through $0.7329 to bring about a bearish signal. Until then, this channel points towards further upside for the pair. To the upside, keep an eye out for Fibonacci resistance in the form of $0.7421 and $0.7452.
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