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.
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.
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.
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.
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
