GBP/USD, EUR/USD and AUD/USD head lower as dollar weakness takes a breather
GBP/USD, EUR/USD and AUD/USD have drifted lower after recent gains. However, with bullish breakouts in play, further upside looks likely before long.
GBP/USD drifting lower after rally into key resistance level
GBP/USD has been gaining ground over the past week, with the pair moving within touching distance of the key $1.2748 resistance level.
A break through that point would bring about a more bullish outlook for the pair. However, we have since been turning lower, with the price having broken through trendline support. Watch for a break below the $1.2642 support level to provide a bearish confirmation signal. Alternately, a rise above $1.2748 brings a bullish short-term bias.
EUR/USD declines back below notable support level
EUR/USD managed to break through the key $1.1263 resistance level earlier this week, providing a rare higher high for the pair.
That points towards a bullish breakout to come, reflecting the dovish shift from the US Federal Reserve (Fed). That breakout failed to hold, with the provision of a huge inverted hammer pointing towards a pullback coming into play. This looks like a retracement of the rally from $1.1116, and the break below $1.1226 signals a good chance that there will be further to come yet. As such, look out for a break through $1.1306 to provide an immediate bullish outlook. However, until then it looks like we will soon turn lower to provide a deeper retracement before turning higher.
AUD/USD turning higher from support level
AUD/USD is finding support following a pullback into the $0.6962 support level.
That level has provided support in early May, and we are likely to do the same here. With the stochastic rising back above the 20 mark, this looks like an interesting area for the bulls to come in again. Alternately, a break back below $0.6962 would look likely to bring a deeper retracement of the rally from $0.6898.
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