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 rebound, but will it last?

EUR/USD, GBP/USD, and AUD/USD regain ground after yesterday’s decline, but will this represent a brief or lasting recovery?

Transcript

​EUR/USD turns higher to maintain short-term recovery

EUR/USD has turned higher from the 76.4% Fibonacci level this morning, with the short-term uptrend looking likely to continue for now.

The caveat to that comes in the fact that we have seen the pair turn lower from the wider 61.8% resistance level at $1.1801, with a bearish trend seemingly in play from that perspective. With that in mind, while we could see another short-term rise coming into play here, there is a good chance that we will see the pair turn lower in a more meaningful manner before long. That wider bearish picture remains in play unless we see a break through the $1.1917 swing high. To the downside, a decline through the $1.1696 low would bring about a fresh sell signal.

GBP/USD turning higher after yesterday’s pullback

GBP/USD is turning higher in early trade today, with the recent recovery looking like it could take shape once more.

With the price having recently faltered at the $1.3007 swing high, the current move higher looks like a potential final shoulder in a bullish inverse head and shoulders formation. A break below the $1.2805 swing low would bring a more bearish picture into play, while a rise through the $1.3007 level would spark a more bullish view.

AUD/USD rally could falter given recent double top

AUD/USD has started to regain ground following an intra-day double top formation yesterday.

​While we are currently seeing the price regain some of that lost ground, the question here is whether we are going to see the recent recovery take hold again. Given the wider bearish breakdown in September, there is a good chance that this current move higher will falter before long to bring about another breakdown. With that in mind, a bearish outlook is in play unless we break through yesterday’s peak of $0.7209.

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.

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.