Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD and AUD/USD expected to decline further

EUR/ USD, GBP/USD and AUD/USD continue to look bearish, with marginal gains for the likes of GBP/USD and AUD/USD doing little to negate the wider trend.

EUR/USD declines continue following break below key support

EUR/USD has been in bearish mode since Wednesday’s break below the critical $1.1167 support level. While we previously managed to break through the $1.1188 swing high, the wider bearish trend remains in play.

Ultimately it seems the 200-day simple moving average (SMA) provided sufficient resistance to halt those recent gains, with the pair moving back into a bearish phase in line with the wider bearish trend. There is a chance that this is just a retracement of that recent $1.1027-$1.1249 rally. Yet with the price already declining below the 61.8% level, further losses could see the 76.4% Fibonacci broken, bringing expectations of a further drop back towards $1.1027.

As such, the key will be whether we respect that 76.4% level or not ($1.1079). It will be a gauge of whether we start to turn higher or head into the August low of $1.1027.

GBP/USD continues to grind higher within downtrend

GBP/USD has managed to gain ground this week, with the Labour proposal to avert a no-deal Brexit at least raising some hope that a disorderly exit can be averted.

However, the wider downtrend remains intact despite this short-term rebound, with yesterday's rally being capped at the 76.4% retracement level ($1.2143). Ultimately, we will need to see a break through the $1.2182 level to negate this bearish trend. Until that happens, further downside looks likely.

AUD/USD turns lower after overnight rally

AUD/USD has been gaining ground overnight, with the pair seemingly retracing off the back of a previous decline below $0.6745.

While the gradual nature of this current intraday decline could mean an ultimate push higher, a bearish picture remains in play for the time being. This would reverse with a break higher, where a push through $0.6818 would bring a more bullish outlook.

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

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading forex provider.

Stay on top of upcoming market-moving events with our customisable economic calendar.