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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. 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 financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD, GBP/USD and AUD/USD gains could be fleeting

EUR/USD, GBP/USD and AUD/USD gain ground amid dollar decline, yet bears likely to return before long.

AUD Source: Bloomberg

EUR/USD starts to weaken after recent rally

EUR/USD has been regaining ground for much of the week, with the price starting to weaken after hitting the 76.4% Fibonacci retracement level at $1.1284.

The downtrend in play over the course of the last three weeks points towards a potential move lower from here, where a break below $1.1245 brings about a bearish confirmation.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD regains ground, yet bearish wider picture remains

GBP/USD has managed to break through the $1.254 swing high this week, bringing about a greater chance of a bullish phase coming into play for this pair.

The wider bearish picture remains in play despite the possibility of a short-term bullish picture playing out. For the short term, a rise through $1.2571 would provide greater confidence over the possibility of a bullish phase. However, that would be deemed as a retracement of the $1.2783-$1.244, before the bearish picture returns. Alternatively, a decline below $1.2509 would be required to see the bearish picture emerge once again.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD gaining ground amid dollar weakness

AUD/USD has been making up ground off the back of a sharp decline at the beginning of the week.

Coming off the back of a rally into trendline resistance, we look to be retracing that wider $0.7048-$0.691 decline. Look for whether we can start reversing lower from this deep resistance zone, where the 76.4% Fibonacci resistance ($0.7015) provides a key level to watch out for. While we could see further upside come into play over the short term, there is a wider bearish picture that looks likely to resurface before long.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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.

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