Dollar strength stifles gains in EUR/USD, GBP/USD and AUD/USD
Risk appetite remains subdued, as we have seen with the falls in EUR/USD, GBP/USD and AUD/USD.
EUR/USD falls below 200-day SMA
EUR/USD has slipped below the 200-day simple moving average (SMA) as the outlook for the European Union’s (EU’s) virus response continues to worsen.
Overall, the selling pressure continues to make itself felt, and opens the way to much more downside in the direction of $1.162, with a more bullish view requiring a move back above $1.194 to suggest a bigger recovery is in play.
GBP/USD still under pressure
Continued losses mean that, at best, GBP/USD needs to recover $1.385 to provide an indication that a low has formed.
Otherwise, the ongoing risk-off move now targets $1.35 as it moves below $1.37, key support from January. However, a short-term bounce after two days of sharp losses may simply attract more sellers.
AUD/USD struggling
The travails of risk assets continue to be amply demonstrated here, as AUD/USD drops to its lowest level since the beginning of February.
If it can hold here as it did then, a more bullish view may emerge, although it will require a recovery above $0.77 to cement this view. Further declines look likely with a loss of $0.755.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
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
- Take your position
- 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.
