Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

EUR/USD, GBP/USD and AUD/USD give back recent gains​​​

​​Outlook on EUR/USD, GBP/USD and AUD/USD as RBA hikes rates by 25 basis-points to 4.35%.

USD Source: Bloomberg

​​​EUR/USD rally eases

EUR/USD’s strong rally on weaker-than-expected Non-Farm Payrolls on Friday took it to a near two-month high at $1.0756 on Monday before it began to give back some of its gains as US yields bounced back and with these the US dollar strengthened slightly.

​The area between the $1.0695 late October high and the 55-day simple moving average (SMA) at $1.0651 is expected to be revisited and may offer support. While it does, medium-term upside pressure should remain in play. If not, the breached July-to-November downtrend line, now because of inverse polarity a support line, at $1.0614 may also offer support.

​Were Monday’s high at $1.0756 to be exceeded, the 200-day SMA at $1.0808 would be eyed, together with the $1.0834 July low.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

GBP/USD rejected by 200-day simple moving average

GBP/USD’s rally faltered just below the 200-day SMA at $1.2435 and is in the process of slipping through its 55-day SMA at $1.2324 towards the late October high at $1.2288 as UK retail sales rise by 2.6% in October versus a 2.8% gain in September.

​Were Monday’s high at $1.2428 to be exceeded, the 11 September high at $1.2548 would be in focus.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​AUD/USD comes off near three-month high on rate hike

​AUD/USD’s advance to its near three-month high at $0.6523 has been followed by a swift sell-off as the Reserve Bank of Australia (RBA) hiked its rates by 25 basis-points (bps) to 4.35% but market participants expecting it to be the last hike in the cycle.

​The 55-day SMA at $0.6398 is thus back in sight ahead of the mid-August low at $0.6365 and the early September low at $0.6358. Minor resistance can be spotted around the $0.6445 mid-October high ahead of major resistance at $0.6511 to $0.6523, the August-to-November highs.

AUD/USD chart Source: IT-Finance.com
AUD/USD chart Source: IT-Finance.com

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.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.