EUR/USD continues to outperform GBP/USD and AUD/USD
EUR/USD continues to outperform, with GBP/USD and AUD/USD heading lower yet again.
EUR/USD rallies towards channel resistance
EUR/USD has been on a surge over the past two weeks, with the pair rising back into the $1.1096 resistance level. The wider perspective shown on the daily chart highlights how we remain within a wider descending channel, with the price having moved past the 61.8% Fibonacci level.
This therefore signals a likely move towards the 76.4% level, with questions asked around those upper levels of this standard deviation channel. With this in mind, watch out for a bearish reversal signals in the intraday charts for a sign that this resurgence is set to come to an end. A break through $1.1239 will ultimately be needed to negate this wider bearish trend.
GBP/USD heading lower after brief respite
GBP/USD has been declining throughout much of the past week, with the pair hitting a four-month low on Friday. The rise seen since that low appears to have been short-lived, with the price turning lower again this morning.
As such, further downside looks likely from here, with a break through the $1.292 level providing a tentative sign that this current decline could slow or come to an end.
AUD/USD rally brings potential shorting opportunity
AUD/USD has managed to regain ground this morning, following a period of declines that took the pair into a 11-year low on Friday. While this rally has taken the pair through the 76.4% Fibonacci retracement level, the downtrend remains intact.
The inside trendline seen throughout the past month provides a potential turning point which has been respected thus far. With that in mind, bearish positions are preferred around this deep retracement, with a break through the $0.6592 level required to negate the current bearish outlook.
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
