Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD, GBP/USD, and AUD/USD decline towards critical support levels

EUR/USD, GBP/USD, and AUD/USD declines raise the possibility of an impending bearish reversal.

Video poster image

EUR/USD closes in on double top formation

EUR/USD has been declining towards the crucial $1.1696 support level, with the pair at risk of posting a bearish double top formation.

Should that break occur, we would be looking at the potential beginning of a wider bearish phase for the pair. Nevertheless, while we have broken all the Fibonacci levels, there is still a chance of a resurgence until $1.1696 is broken. As such, a bearish outlook comes with a break below $1.1696, while the bullish trend comes back into play on a rise through the $1.1808 level.

EUR/USD price chart Source: ProRealTime
EUR/USD price chart Source: ProRealTime

GBP/USD weakness brings key support zone into play

GBP/USD has declined into a crucial area of support, with the $1.2981, $1.3009, and $1.3019 support zones key to maintaining the bullish trend that has been in play.

A rally through the $1.3132 level would help build that bullish view once more. However, any further downside and we risk seeing key levels broken that would signal a potential bearish reversal for the pair.

GBP/USD price chart Source: ProRealTime
GBP/USD price chart Source: ProRealTime

AUD/USD declines into trendline support

AUD/USD weakness has taken the pair back into an inside trendline, with the uptrend coming into question if we see another move to the downside.

Given the wider uptrend and the recent respect of this trendline, there is a chance we will see the pair move higher from here. Such a rally would need to break through the $0.7189 level to add greater confidence that such a resurgence is underway. However, a decline through the $0.7076 level would go a long way to highlighting a wider bearish reversal for the pair.

AUD/USD price chart Source: ProRealTime
AUD/USD price chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

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 provider of CFDs.

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