EUR/USD, GBP/USD and AUD/USD move up to recover losses
Renewed USD weakness has allowed the euro, sterling and Aussie to make back some lost ground from earlier in the week.
EUR/USD reverses bearish move
Sellers seemed to have gained the upper hand with EUR/USD yesterday, with the continued retreat from Monday’s highs. Some early gains this morning have helped to stabilise the situation for the buyers but overall the broadly gloomy tone remains firmly in place.
While daily stochastics have now rolled over with a bearish crossover, the price is testing rising trendline support from the late November low. A move below $1.1265 would confirm a bearish view.
GBP/USD surge shows no sign of slowing
The counter-trend bounce in cable goes on here with GBP/USD, as the price pushes on back towards the 100-day simple moving average (SMA) at $1.3558. Bearish hopes were dashed yesterday with the solid move higher, which continues today and suggests we could see further strength into the second half of the week.
Of course, this is still a bounce from an overstretched lower low, so any lower high below $1.374 would still leave the downtrend intact.
AUD/USD edges higher
After Monday’s losses AUD/USD rebounded yesterday, but it remains stuck below the 50-day SMA ($0.7241) for the time being. A drop back below $0.72 would reinforce the bearish view and help reaffirm the potential of Monday’s drop to create a lower high.
Further gains above $0.7277 would put a move back to the early November swing high at $0.7364 in view.
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.
