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 awaits data, EUR/GBP close to resistance as AUD/USD stalls

EUR/USD trades in low volatility while EUR/GBP snapped back up but nears technical resistance, just as AUD/USD did before stalling.

​EUR/USD trades sideways in low volatility ahead of US data

EUR/USD continues to range trade in low volatility below its two-month downtrend line at $1.1023 as traders await US consumer confidence, core personal consumption expenditures (PCE) price index and employment data.

A slip through yesterday’s low at $1.0945 would engage the mid-March $1.0901 low. Further down sits the $1.0806 early March low.

Minor resistance above the downtrend line can be spotted at yesterday’s $1.1037 high. While the cross remains below the next higher mid-March high at $1.1137, this year’s downtrend remains intact.

EUR/GBP rally approaches resistance zone which may cap

EUR/GBP’s advance off last week’s £0.8296 low is about to reach the 16 February and 25 February highs at £0.8402 to £0.8408 around which the cross may stall, though.

If not, the current March high at £0.8458 would be back in play, together with the 200-day simple moving average (SMA) at £0.8471.

Minor support can be found along the 55-day SMA and 11 March low at £0.8362 to £0.836. Then there is yesterday’s low at £0.8322.

Respite for the AUD/USD rally

AUD/USD’s strong rally has come close to its $0.7555 October peak but stalled just shy of it at $0.754 despite strong Australian retail sales data as traders assess the situation in Ukraine, the fall in the oil price and lockdowns in China.

This has come as no surprise to technical analysts since previous lows and highs often act as initial resistance when they are revisited. In this case the February and March 2021 lows with the October 2021 high at $0.7532 to $0.7564 create such a resistance zone.

Range trading below the $0.754 to $0.7555 October and current March highs is likely to ensue today. Support below yesterday’s low at $0.7467 can be spotted at the 7 March high at $0.7441. ​Only a rise and daily chart close above the February 2021 low at $0.7564 would push the January 2021 high at $0.782 to the fore.

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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