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 rally back to key resistance

EUR/USD, GBP/USD and AUD/USD rally towards key resistance, with recent downtrends coming under the microscope.

​EUR/USD rallies back into key resistance level

EUR/USD has managed to rebound back into the $1.1353 resistance level, with the recent rise raising the possibility of a bullish breakout after the declines seen throughout much of June.

With the price having initially turned lower from the key breakout threshold, there is a chance we reverse from here to continue the bearish trajectory of the past fortnight. However, if we do break through that $1.1353 level, it would point towards the potential beginning of another bullish phase from here.

GBP/USD rebound brings deep retracement

GBP/USD has also been regaining ground, with the pair rising back towards key Fibonacci resistance at $1.2553 and $1.2604. Unlike EUR/USD, we remain some way off a bullish breakout, with the downtrend seen throughout the past two weeks still in play unless we see a break through the $1.2687 level.

With that in mind, the short-term gains could come undone around one of those resistance points. Watch for a break below the most recent swing low to bring a bearish signal (currently $1.2432).

AUD/USD rallies into key resistance zone

AUD/USD gains have taken the pair into a zone of horizontal and inside trendline resistance, with the price starting to turn lower in response. A bullish breakout from this recent retracement phase would come with a break through that $0.6976 level.

However, with the price turning lower, there is a chance we could decline from here. As such, the ability to break through $0.6976 will be key to determining whether we break higher or reverse lower from here.

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.