EUR/GBP and AUD/USD surge while USD/CAD edges lower
The US dollar has come under pressure following the latest Fed decision, while the euro is making headway against the pound.
EUR/GBP on the up again
EUR/GBP has resumed its march higher it seems, after dropping towards the 200-day simple moving average (SMA) yesterday.
The early October bounce faltered as it headed towards £0.874, so a close above this level would help to reinforce the bullish view by creating a higher high.
A close below £0.868 would see the price drop below trendline support, a possible bearish signal.
AUD/USD surges after Fed meeting
A more cautious Federal Reserve (Fed) meeting has allowed AUD/USD to rally, after the past four weeks of consolidation.
Yesterday’s surge took the price through trendline resistance from early August, and also sees it above the 50-day SMA for the first time since late July.
Additional gains target the $0.65 area, which marked a zone of resistance over the past twelve weeks. A reversal back below $0.635 would point towards a renewed test of the $0.63 support zone.
USD/CAD drops back
After a solid rally during October, USD/CAD may come under pressure following last night’s Fed meeting.
A close below C$1.38 might provide the catalyst for a drop back towards trendline support from early October, or towards the rising 50-day SMA.
A close above C$1.3898 would mark a new multi-year high, with the price moving above the peak from August 2022.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
