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EUR/USD, GBP/USD and AUD/USD build bullish momentum

EUR/USD, GBP/USD and AUD/USD begin to take on more bullish formations despite prior losses.

EUR/USD consolidating after bullish surge

EUR/USD managed to push into a deeper retracement yesterday, with the break through $1.099 bringing a surge into a new October high. While the pair is starting to weaken, there is a good chance that we will see another leg higher before long.

Keep an eye out for the $1.10 handle as near-term support. However, whether we see that next leg higher or not, the wider bearish trend dictates that this recent rebound is highly likely to be a retracement before we turn lower once more. As such, unless we see the $1.1109 level broken, this current bullish phase is likely to be relatively short.

GBP/USD breaks through key support after Irish talks

GBP/USD has enjoyed a particularly bullish 24 hours, with UK Prime Minister Boris Johnson’s meeting with his Irish counterpart providing grounds for optimism over the possibility of an eventual Brexit deal.

That surge has taken the price through the $1.2412 resistance level, signaling an end to the bearish breakdown from the September head and shoulders formation. As such, we are likely to see further upside come into play before long, with a break through $1.2469 needed to negate the notion that we could see a retracement today.

AUD/USD rallies into key resistance level

AUD/USD has been on the rise towards the end of this week, with the pair building on the base that seems to have been forming after the price declined into the crucial $0.6677 support level.

With that rally bringing us back into the $0.6774 swing high, a push through this resistance level brings about a more optimistic outlook for the coming days. With a wider bearish trend in play, such a rally looks likely to be a retracement of the sell-off from $0.6894. Thus, further upside does look likely, yet traders should keep an eye out for the $0.6809 and $0.6842 Fibonacci resistance levels as potential points of reversal.

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.

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