EUR/USD, AUD/USD advances stall while EUR/GBP nears support
Outlook on EUR/USD, EUR/GBP and AUD/USD amid German consumer confidence and Australian retail sales data.
EUR/USD stalls marginally below last week’s $1.0965 high
EUR/USD comes off last week’s four-month high at $1.0965 despite German consumer confidence inching higher but remaining very low with no signs of a sustainable recovery in the months ahead.
While Monday’s low at $1.0926 isn’t giving way, overall upside pressure should remain intact. A rise above $1.0965 would engage the late June high at $1.1012 and the August peak at $1.1065.
A bullish continuation remains the most likely scenario as long as Wednesday’s low at $1.0853 underpins on a daily chart closing basis.
EUR/GBP reversal off its six-month highs nears its early November low
Over the past couple of weeks EUR/GBP has swiftly come off its six-month high at £0.8766 amid the UK’s autumn statement and as the UK government looks committed to revive the UK economy which has led to pound sterling appreciation.
The early November low at £0.865 is thus back in view, a slip through which would put the 11 October low at £0.8617 on the cards and confirm a medium-term toppish technical formation.
Resistance above the 55- and 200-day simple moving averages (SMA), which currently cap at £0.868 to £0.8682, comes in along the breached August-to-November uptrend line which, because of inverse polarity, now acts as a resistance line at £0.8697 ahead of the July peak at £0.8701.
AUD/USD advances in 3 ½ month highs
AUD/USD’s advance in 3 ½ month highs has been slowed down as Australia retail sales unexpectedly fall with the cross slipping back from Tuesday’s $0.6631 peak.
The November accelerated uptrend line and 200-day SMA at $0.6589 to $0.6583 may offer support. While the next lower August and September highs and last Wednesday’s reaction low at $0.6522 to $0.6511 hold, the current medium-term uptrend will remain valid.
A rise above $0.6631 would have the early July high at $0.6705 in its sights.
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.
