EUR/USD, GBP/USD and AUD/USD slump as the dollar dominance returns
EUR/USD, GBP/USD and AUD/USD head sharply lower, with the wider bearish trends coming back into play.
EUR/USD breaks lower, heralding the potential return of dollar dominance
EUR/USD has taken another major step lower this week, with the price collapsing through the key $1.0122 support level to draw a line under the recovery seen throughout much of July and early-August.
Ultimately, if you believe markets are due another leg lower, then by proxy, we should also see the dollar push into another period of dominance too. With that in mind, further downside seems likely, with any short-term upside moves deemed a selling opportunity unless the price break the latest swing high (currently $1.0203).
GBP/USD breaks support, with further downside likely
GBP/USD has also broken through key support, with the move below $1.2003 bringing about the completion of a double top formation.
The wider downtrend does highlight the potential for another bout of weakness in the event that the wider risk-off sentiment returns. With the price continuing to decline, sentiment has clearly taken a turn for the worse. As such, a bearish outlook holds here, with a move up through the latest swing-high of $1.2142 required to bring about a more positive view.
AUD/USD continues its decline as it heads towards major support level
AUD/USD continues its downward trajectory this morning, with the pair moving ever closer to the key $0.6869 swing-low.
That support level is going to be crucial here, with a move through that point ending the recent recovery phase to bring confirmation that the wider bearish trend is back in play. As such, watch for the reaction to $0.6869, with a break below that point bringing expectations of further weakness for the pair.
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. 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
See more forex live prices
Prices above are subject to our website terms and agreements. Prices are indicative only
