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. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD, and AUD/USD rebound could prove short-lived

EUR/USD, GBP/USD, and AUD/USD seeing marginal gains, yet the wider bearish picture could come back into play before long.

EUR/USD declines further amid dovish ECB rhetoric

EUR/USD has continued its decline, with a dovish message from the President of the European Central Bank (ECB), Mario Draghi, helping drive the euro lower yesterday.

This took us into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels. Given the prior wedge breakout, this looks like a retracement before we turn higher. However, much of that will come down to whether the Federal Reserve (Fed) decides to cut rates later today. In any case, a bullish signal comes with a break through the $1.1247 level. Until then, another leg lower remains a distinct possibility.

GBP/USD turns higher after break below key support

GBP/USD is starting to gain ground after yet another phase of weakness for the pair.

This recent break below $1.2559 and trendline support signals a likely wider bearish phase coming into play. However, for now we could see the pair start to gain ground, with a rise through $1.2605 providing us with a more bullish outlook for the short term. That being said, such a move would only look like a retracement of the decline from $1.2763. Thus, a bearish medium-term outlook remains as long as we are below that $1.2763 level.

AUD/USD gains ground, yet bearish outlook remains

AUD/USD saw a rare rebound yesterday, with the pair rising back above the crucial $0.6864 breakdown level.

The initial fall below that level signals a return to the wider bearish outlook for the pair, with further downside looking likely before long. A rise through $0.6884 would signal a potential bullish short-term picture coming into play. However, whether that happens or not, a bearish outlook remains unless we see a break above $0.7021.

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.