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 and come with a high risk of losing money rapidly due to leverage.

EUR/USD, GBP/USD and AUD/USD rebound may not last long

EUR/USD, GBP/USD, and AUD/USD start to regain ground after recent losses, but bears look likely to return before long.

EUR/USD turning higher but gains could be brief

EUR/USD is moving higher this morning, despite seeing what looked to be the latest move lower for a pair which looks likely to fall further.

The wider reversal signal seen in August and September provided a bearish outlook despite recent gains. With that in mind, the decline below $1.1733 highlighted the end of the recent upward retracement mode, with further downside likely from here. Despite the inability to break below the $1.1689 lows on Friday, there is a good chance we will soon turn lower. As such, a bearish outlook holds unless we see a rise through the $1.1771 swing high.

GBP/USD on the rise from key support

GBP/USD has turned higher from yet another deep retracement. However, on this occasion the retracement was total, with the price coming back and respecting the $1.2863 support level established on Wednesday.

The recent trend of narrowing gaps between lows does point towards a potential top coming into play before long. Therefore, while we are likely to see further short-term upside, there is a risk that this could fall short of the $1.3064-$1.3082 resistance zone to turn lower.

AUD/USD turning higher, yet bears likely to dominate

AUD/USD has been consolidating this morning, with Chinese gross domestic profit (GDP) disappointment doing little to boost the Australian dollar.

The recent breakdown below the $0.7096 support level points towards further downside to come, with short-term upside likely to be a retracement and precursor to another move lower. With that in mind, while we could see the pair gain some ground over the short term, a bearish outlook remains in play until recent swing high resistance is broken around $0.7191 and $0.7243.

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.

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