EUR/USD and AUD/USD at key support, while GBP/USD outperforms
EUR/USD and AUD/USD look set for further downside, while GBP/USD breaks higher after recent declines.
EUR/USD continues to drift towards critical support level
EUR/USD remains marginally above the critical $1.1066 support level, following on from a period of declines that have broken both Fibonacci and $1.1085 support.
The long-term outlook remains bearish and we need to see $1.1066 broken to bring that outlook into play for the shorter term. As such, watch for whether we can break that level as a gauge of market sentiment going forward.
GBP/USD breaks resistance amid recent recovery
GBP/USD has managed to follow up its previous bullish break through $1.3097 with a second higher high above $1.3119.
That break came after a deep retracement, yet the inability to break below $1.2954 was telling. Momentum seems to be shifting in the short term, with the stochastic rolling over from overbought. As such, we could see short term weakness, yet that would be perceived as a short-term retracement that can be bought into. Thus, a bullish outlook is in play unless we see a break below the $1.2954 support level.
AUD/USD rebounds after head and shoulders completion
AUD/USD broke below both $0.6849 and $0.6838 support levels yesterday, completing the head and shoulders formation that has been building over the past two months.
This signals further downside to come, although with the price currently rebounding it seems we could be in for a retracement phase first. As such, this rebound looks like a potential shorting opportunity. This bearish outlook holds unless we see a break through the $0.6934 level.
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