EUR/USD, GBP/USD and AUD/USD all struggle in early trading
A bout of risk aversion has hit FX markets, with the US dollar strengthening once again.
EUR/USD turns down in early trading
The EUR/USD bounce of earlier in the week has been reversed and now a move to the $1.1186 level seems likely.
This would then open the way towards further downside. The relatively weak bounce in momentum indicators such as stochastics points towards a resumption of the downtrend in due course.
GBP/USD still unable to bounce
After a small recovery yesterday the GBP/USD price is under pressure once again.
We look for a push back towards $1.316, as the downward move of the past month reasserts itself. A revival above $1.33 still looks a distant prospect for now, but would be needed to provide a more short-term bullish view.
AUD/USD bounce stalls
Having rallied along with equity markets after a bruising decline in November, the AUD/USD price has stalled around $0.7185.
A small reversal for now has yet to signal a return to the downtrend, but a failure to revive the move and rally above $0.72 would send a bearish message. A drop below $0.71 would open the way to further downside.
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