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 on cusp of directional break

EUR/USD, GBP/USD and AUD/USD have been consolidating, with market direction changing on a weekly direction. However, we appear to be on the cusp of a directional break to set the forthcoming direction.

EUR/USD finds tentative support at Fibonacci level

EUR/USD declines have taken us into the 76.4% Fibonacci level ($1.0821) recently, with Friday seeing a sharp rise off that region. Despite the move lower in early trade today, there is a good chance that we have bottomed out for now. Looking at the price action over the past two months, there is a clear tightening in EUR/USD given the creation of lower highs and lower lows.

With that in mind, we would need to see a break from that pattern to give us a signal that this narrowing is set to end. A bullish break would necessitate a rise through $1.0991, while a drop below $1.076 would bring a bearish break. Given this creation of higher lows, there is a good chance we will turn higher from here, with the rise through $1.0878 providing a bullish signal. Watch for whether we manage to reverse higher from this region, with the price currently respecting the intraday 61.8% support level at $1.0843. Alternatively, a break back below the Friday low of $1.0812 would point towards a potential move to ultimately break below that key $1.076 low.

GBP/USD continues to consolidate after previous gains

GBP/USD has been in consolidation mode over the past few trading days, with the price largely rotating between the $1.2407 and $1.2516 levels.

The wider trend seen over the past month has been bullish, signaling the potential for an upside breakout from here. However, it makes sense to expect further consolidation until we see a breakout from this range.

AUD/USD reaching triangle apex

AUD/USD has also been consolidating recently, with the pair moving into the apex of a symmetrical triangle formation. This points towards a likely breakout in the near term, as we await a signal on the short-term direction of this pair.

Given the recent breakdown, and previous uptrend seen earlier this month, there are arguments on both sides. As such, it makes sense to await a breakout through $0.6314 or $0.6378 to bring about a signal for where we are likely to go 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


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.