EUR/USD, GBP/USD fade while AUD/USD is set for further gains
EUR/USD on the slide, while GBP/USD could swing back higher, despite losing ground earlier this week, and AUD/USD looks primed for further upside.
EUR/USD declines into notable support level
The EUR/USD rally came under pressure yesterday, with the move into the 76.4% level being greeted by another leg lower. That sell-off has taken the price into $1.0985 support, and it appears to be consolidating here. A break below that level would point towards a likely decline back into the $1.0926 level, which has been respected twice this month.
Ultimately, the wider bearish trend remains intact, with a break through $1.1154 required to negate that. Therefore, the fact that we have seen the price respect the 76.4% retracement means there is a good chance we could see further downside come into play before long.
GBP/USD pullback brings another buying opportunity
GBP/USD has been gaining ground over the course of September, with the price rallying into the $1.25 mark. While the price has been falling back since the start of the week, the recent rally looks likely to persist unless it breaks below $1.2283.
As such, it looks likely we will see further upside come into play in the near-future, with the 61.8% and 76.4% Fibonacci support levels providing an interesting area for longs.
AUD/USD falls into key support level
AUD/USD has been on the slide overnight, with the pair breaking through trendline support. That decline has seen the price fall into a crucial area of support, which represents the lows from January and June.
Given those historical lows, we would need to see a break below this support zone of $0.6831-$0.6822 to point towards a wider retracement of the recent rally. Until then, watch for a potential rebound from here to continue that September uptrend.
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
