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. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

Counter-trend dollar weakness unlikely to persist

Short-term upside for the likes of EUR/USD, GBP/USD and AUD/USD has provided a counter-trend move, but the sellers are likely to return.

EUR/USD turning higher from support zone

EUR/USD managed to decline into within touching distance of the $1.1111 support zone in play over the past month.

However, it looks like the pair is now setting itself up for a rebound, with the price breaking higher from a consolidation phase. An hourly close above $1.1143 would raise the likeliness of a rebound from here, with another upward retracement coming into play.

GBP/USD moving higher within recent downtrend

GBP/USD is also seeing some upside come into play this morning, coming amid a remarkably consistent sell-off in the pair. This is likely to be a short-term phenomenon, yet it will come down to whether we see a break through the $1.2641 swing high. Should that occur, a rebound into a wider retracement of the $1.2748-$1.2580 sell-off would come into play.

However, until that break occurs, there is a good chance we are simply retracing the shorter-term $1.2641-$1.2580 move. As such, another leg lower looks likely before long, with a break above that first swing high required to point towards a wider retracement coming into play.

AUD/USD rallies into resistance zone

AUD/USD is moving higher after yesterday’s sharp decline that took the pair into a new low for the week. The pair is currently moving higher once more, yet the sellers expected to return before long.

A rise through the $0.6936-$0.6938 resistance zone would bring about a bullish picture. However, until that happens, we look likely to falter around that area once again today.

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


Prices above are subject to our website terms and agreements. Prices are indicative only

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading forex provider.

Stay on top of upcoming market-moving events with our customisable economic calendar.