EUR/USD, GBP/USD, and AUD/USD start to roll over from resistance
EUR/USD, GBP/USD, and AUD/USD start to roll over, with recent gains coming into question once again.
EUR/USD starts to turn lower from key resistance
EUR/USD is turning lower after a rally into the $1.2177 resistance level overnight. That level corresponds to what would form a left shoulder if we ultimately break back below the potential head and shoulders neckline of $1.2059.
However, we are still some way from that neckline breakdown. For now, the fact that we are finding resistance on this level does provide the potential for a bearish turn here, with a rally up through $1.2177 required to continue this recent bullish push. Until then, it seems likely we will see the bears start to gain momentum again as we look to close out a historic week.
GBP/USD falls back in dramatic fashion
GBP/USD has seen sharp losses this morning, with the pair falling back towards the 76.4% Fibonacci support level. With a wider uptrend in play, the question is whether this is going to be a potential retracement of the short-term rally from $1.3623 or wider move from $1.352.
That will be answered relatively swiftly, with the price either respecting this 76.4% Fibonacci level to push upwards, or break below the $1.3623 level to bring the wider pullback into play. In either case, this current pullback looks likely to be a short-term move within a wider bullish trend.
AUD/USD rolls over from Fibonacci resistance
AUD/USD has started to weaken from the 76.4% Fibonacci resistance level, with the pair looking at risk of building on the already bearish short-term trend of lower highs.
A break up through the $0.7805 resistance level would negate that short-term trend and see a continuation of the wider bullish trend. However, with the latest move lower in motion, it looks likely we will see further downside over the short term. To the downside, the $0.766 region provides a clear support zone to watch.
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