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.

EUR/USD chart Source: ProRealTime

EUR/USD chart Source: ProRealTime

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.

GBP/USD chart Source: ProRealTime

GBP/USD chart Source: ProRealTime

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.

AUD/USD chart Source: ProRealTime

AUD/USD chart Source: ProRealTime


This information has been prepared by IG, a trading name of IG Markets 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
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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.