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. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD, and AUD/USD recovery underway yet hurdles remain

EUR/USD, GBP/USD, and AUD/USD have been recovering after a recent dollar gains. However, with key hurdles up ahead, there are still some questions to answer for bulls.

EUR/USD gains ground from Fibonacci support

EUR/USD has been gaining ground following a period of dollar strength that has seen the pair drop into the 76.4% Fibonacci support level. The rebound from that level has now started to slow, with the pair seeing some signs of weakening.

Crucially, while we have started to see the bulls come into play, there are still questions that need answering for the wider bullish picture to come back into play. Most notably, a rise through the $1.2284 swing-high would bring about a fresh bullish signal. Until then, watch out for potential weakness from this short-term Fibonacci zone of $1.2226-$1.2249.

GBP/USD starts to reverse from key resistance

GBP/USD has been outperforming over the course of this week, with the rise into the prior peak of $1.3703 being completed overnight.

That level is going to be key here, with price already showing signs of potential weakness this morning. As such, the reaction to this level will dictate the state of play here, with a break and hold above that point required to bring a bullish continuation signal.

AUD/USD rebounds from Fibonacci support

AUD/USD has rebounded from the 76.4% Fibonacci support level this morning, with the pair seeing sharp gains yesterday.

However, we have started to see some consolidation given the continued trend of lower highs. That pattern means we will be looking out for a potential break through the $0.7799 swing-high to signal an end of the recent pullback and continuation of the wider uptrend.

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

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading forex provider.

Stay on top of upcoming market-moving events with our customisable economic calendar.