EUR/USD, GBP/USD and AUD/USD decline, as downtrends remain intact
EUR/USD, GBP/USD and AUD/USD continue to sell off, yet questions remain over the longevity of these moves.
EUR/USD rally brings about bullish short-term possibilities
EUR/USD sold off for much of last week, with the price hitting a two-year low. However, we are seeing tentative signs of strength following Friday’s rally.
For the short term, we have key trendline and horizontal ($1.0959) resistance to overcome. However, with momentum reversing higher off the back of a retracement, such a break could occur. Should we see those levels overcome, it would point towards a wider retracement coming into play. However, until $1.0959 is overcome, the short-term bearish trend remains relevant.
GBP/USD continues to drift lower
GBP/USD has been on the slide since breaking below the $1.2413 and $1.2393 support levels.
That bearish trend looks likely to continue until we see something to tell us otherwise. Thus, the bearish outlook remains in play unless the price breaks through the $1.2331 swing high established on Friday.
AUD/USD declines into key support zone
AUD/USD has moved to the bottom of its recent consolidation zone, with the price breaking through trendline support.
Down below, we have a cluster of Friday’s low, Wednesday’s low, and the 76.4% Fibonacci retracement at $0.6736. A break below this zone of support would serve to provide a bearish continuation signal. It would also raise questions over whether we are gearing up for an ultimate break back down to $0.6687. As such, watch out for how the pair responds to this support zone as a gauge of impending price action.
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