EUR/USD, GBP/USD, and AUD/USD regain ground from key support
EUR/USD, GBP/USD, and AUD/USD start to regain ground, but will this mark the end of the recent phase of weakness?
EUR/USD rebounds from key support
EUR/USD has been on the rise after last week’s decline took the pair back into the notable $1.2059 support level. With the price fighting back, the key here is whether we see price break through the $1.2177 swing high.
With the stochastic starting to roll over within overbought territory, there is still a risk we could continue this intraday trend of lower highs by reversing lower before long. However, with a wider uptrend in play and price approaching the first notable swing high, a continuation of this recovery could soon provide us with a break that negates much of the bearish sentiment built over the past week.
GBP/USD recovers from Fibonacci support
GBP/USD has managed to regain much of its lost ground following a decline into the 76.4% Fibonacci support level. The wider uptrend always remained intact unless the price broken through the $1.3451 support level, and thus it is likely we will ultimately break up through the prior high of $1.371.
With the price starting to lose traction this current candle, a stochastic break back below the 80 threshold could bring doubts over whether this straight-line recovery is going to continue. Nevertheless, with the uptrend remaining intact, the continued trend of higher lows does ultimately point towards further gains to come.
AUD/USD making slow progress after finding support
AUD/USD similarly managed to find support on a key swing low, with the pair turning higher off the $0.7666 level. However, we are not out the woods yet, with the recent trend of lower highs providing a warning sign that this could be another retracement. A break up through $0.7805 would bring about a more reliable bullish continuation signal for the pair.
However, until then it is worthwhile being cautious around these $0.7749 and $0.7771 Fibonacci resistance levels. To the downside, the fact that we have not yet broken out of this bullish trend means it makes sense to watch for a breakdown below $0.7659 before looking for bearish positions.
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
