EUR/USD, GBP/USD and AUD/USD likely to fade after overnight gains
EUR/USD, GBP/USD and AUD/USD regain ground overnight, but they look unlikely to last.
EUR/USD rebound looks destined to fail
EUR/USD has been grinding higher overnight, in a bid to regain some of the lost ground seen throughout yesterday's session.
However, the downtrend remains intact unless the price rises through the $1.1261 level, with the existence of a provisional descending trendline signaling a potential bearish turn in the near-future. As such, a bearish outlook remains in play here.
GBP/USD manages to muster shallow rebound
GBP/USD has attempted to regain some of yesterday's sharp declines, with the pound suffering in the wake of the Bank of England (BoE) meeting. However, that rebound has been pretty weak, and the rise into overbought for the stochastic highlights that it could soon come to an end.
Watch for a potential bearish turn in the near future, with a rally through the descending trendline required to start building a more bullish case.
AUD/USD in consolidation mode as pair regains ground
AUD/USD has been trading within a symmetrical triangle formation over the latter part of the week, with the rise seen overnight providing yet another example of that consolidation.
The breakout from this zone would provide us with a more confident directional bias, with the $0.6902 (bullish), and $0.6836 (bearish) levels providing key thresholds 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