EUR/USD, GBP/USD and AUD/USD decline into critical support levels
The dollar is coming back into prominence, with EUR/USD, GBP/USD and AUD/USD all falling towards crucial bearish breakdown levels.
EUR/USD approaching key support level
EUR/USD saw a sharp decline in the second half of the week, with the price declining towards the crucial $1.1263 support level.
The lows we have seen thus far tally up roughly with trendline support and the 76.4% Fibonacci retracement. However, with the price consolidating in a similar manner to that seen yesterday, a break below the $1.1268 low would look likely to bring a move back into that critical $1.1251 swing low. Such a move would bring about a wider bearish picture, yet until that occurs the uptrend remains intact.
GBP/USD looking at risk of bearish reversal amid decline into key support
GBP/USD has declined towards the crucial $1.2653 level, in a move that could pave the way for another significant decline for the pair.
With the recent rally failing to push through the $1.2763 swing high, a decline below the $1.2653 level would pave the way for further downside from here.
AUD/USD breaks key support as the pair continues to come under pressure
AUD/USD has continued its decline, with the breakdown below $0.6963 providing a bearish signal that has played out throughout this week.
The break below $0.6898 provides us with a signal that points towards a wider bearish picture coming back into play. With the price seemingly trading within a falling wedge pattern, a rise through $0.6918 would bring expectations of a short-term rebound. However, until that happens further declines seem likely.
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