EUR/USD and GBP/USD tumble, while AUD/USD gains look likely to reverse
EUR/USD and GBP/USD are on the slide, with both markets hitting multi-year lows. Meanwhile, AUD/USD gains could be lost amid a wider downtrend.
EUR/USD hits two-year low
EUR/USD has been on the slide, as dollar strength helps drive the pair into the lowest level since 2017. The hourly chart highlights a clear intraday downtrend that is likely to come back into play, despite a bounce this morning.
As a result, bearish positions are preferred, with a break through $1.0975 required to bring about a more bullish outlook.
GBP/USD slumps amid Brexit fears
For this pair, we are likely to see further downside to come, with the losses seen today taking us into the lowest level since October 2016. Therefore, keep an eye out for this intraday picture, where further losses are expected unless the price breaks through the $1.2077 consolidation high seen yesterday.
AUD/USD rebounds after RBA lowers rate cut hopes
AUD/USD has been on the rise this morning, with the decision reached by the Reserve Bank of Australia (RBA) to maintain rates at 1%. That decision also reduced market expectations of an October cut, to the benefit of the Australian dollar. However, the rebound we have seen in this pair has taken us into a key resistance area, with trendline resistance coming into play.
Crucially, given the recent creation of lower highs, there is a good chance we will turn lower from here, with a rise through $0.6729 required to bring about a new bullish outlook for the short term.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
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