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. 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.

EUR/USD and AUD/USD edge higher from recent lows, while GBP/USD fights to move higher

The dollar remains strong overall but buyers in EUR/USD and AUD/USD have managed to drag these pairs off their recent lows.

EUR/USD rebounds off lows

The dramatic slump of the past three weeks seems to have paused for now, as EUR/USD price rallies back above $1.13, having fallen below this level only two days after dropping below $1.14.

It is still too early to argue that a lower low is in, and the price could easily roll over and resume its move to the downside. A recovery above $1.14 would help reinforce the view that a bounce could be in play.

GBP/USD struggles higher

GBP/USD has managed to eke out some gains over the past week, but without much real momentum. It has been knocked back from the day’s highs so far this week, with gains faltering as the price nears $1.345.

This suggests that sellers retain the upper hand, and we look for a reversal below $1.34 that would renew the bearish view. A rally above $1.345 would start to suggest a near-term bounce is in play.

AUD/USD moves off overnight lows

Hopes of a bigger rebound have been dashed for now as AUD/USD price slumped back to $0.73 yesterday.

While it has recovered from the overnight lows the bullish view will be negated unless we can see a recovery of $0.735. A continued defence of $0.729 may be all the buyers can hope for, for the time being.

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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