EUR/USD, GBP/USD and AUD/USD rebound may not last long
EUR/USD, GBP/USD, and AUD/USD start to regain ground after recent losses, but bears look likely to return before long.
EUR/USD turning higher but gains could be brief
EUR/USD is moving higher this morning, despite seeing what looked to be the latest move lower for a pair which looks likely to fall further.
The wider reversal signal seen in August and September provided a bearish outlook despite recent gains. With that in mind, the decline below $1.1733 highlighted the end of the recent upward retracement mode, with further downside likely from here. Despite the inability to break below the $1.1689 lows on Friday, there is a good chance we will soon turn lower. As such, a bearish outlook holds unless we see a rise through the $1.1771 swing high.
GBP/USD on the rise from key support
GBP/USD has turned higher from yet another deep retracement. However, on this occasion the retracement was total, with the price coming back and respecting the $1.2863 support level established on Wednesday.
The recent trend of narrowing gaps between lows does point towards a potential top coming into play before long. Therefore, while we are likely to see further short-term upside, there is a risk that this could fall short of the $1.3064-$1.3082 resistance zone to turn lower.
AUD/USD turning higher, yet bears likely to dominate
AUD/USD has been consolidating this morning, with Chinese gross domestic profit (GDP) disappointment doing little to boost the Australian dollar.
The recent breakdown below the $0.7096 support level points towards further downside to come, with short-term upside likely to be a retracement and precursor to another move lower. With that in mind, while we could see the pair gain some ground over the short term, a bearish outlook remains in play until recent swing high resistance is broken around $0.7191 and $0.7243.
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
