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 GBP/USD on the rise as AUD/USD lags behind

EUR/USD and GBP/USD show potential for a bullish resurgence, while AUD/USD lags behind.

EUR/USD shows first signs of bullish phase

EUR/USD managed to rise through the $1.1831 resistance level yesterday, with the pair showing the first signs of a bullish phase after two months of downside. The very gradual nature of this sell-off has highlighted the potential for a breakout before long, yet we needed to see a push through resistance for that to come into play.

While $1.1831 is a notable level, a rise through $1.1851 would bring greater confidence that a bullish phase is coming into play. Nonetheless, with the intraday trend showing higher highs and higher lows, it makes sense to look at this with a more bullish view unless the price falls back below $1.177.

GBP/USD closes in on key resistance

GBP/USD has been on the rise over the course of the past week, with the pair pushing up through the 76.4% Fibonacci resistance level yesterday.

With pricing closing in on the key $1.391 swing high, a break through that level would bring a bullish reversal signal after two months of downside. As such, the ability to break up through $1.391 will be critical in determining sentiment as we move forward.

AUD/USD lags behind as it falls towards double top support

AUD/USD has failed to replicate the gains seen elsewhere, with the dollar dominating this pair once again this morning. A break through the $0.733 level would complete a double top formation, highlighting the potential for further downside from here.

As such, watch for a potential break below $0.733 to bring about a bearish continuation signal. Notably, the underperformace of the Australian dollar also brings attention to the fact that we could see strength for the likes of EUR/AUD and GBP/AUD in the day ahead.

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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