EUR/GBP and USD/CAD fall back, while AUD/USD consolidates
The euro is retreating against the pound, as is the US dollar versus its Canadian counterpart. AUD/USD is holding firm near recent highs.
EUR/GBP retreats from 50-day moving average
The bounce here has carried EUR/GBP back to the 50-day simple moving average (SMA), which has acted to cap gains over the past three weeks.
A fresh decline from here would then target last week’s lows at £0.85, and resume the ongoing downtrend.
A close above the 50-day SMA and then above the February highs at £0.858 would mark a more bullish development.
AUD/USD consolidation continues
AUD/USD continues to consolidate around the highs hit last week, shrugging off weakness at the beginning of the week.
If this consolidation resolves into a move higher, and breaks above the highs at the end of last week, then it will continue to recoup the ground lost in the opening weeks of the year.
A short-term pullback could target the 200-day SMA, or a deeper pullback would head towards rising trendline support from early February.
USD/CAD under pressure
The move higher with USD/CAD from the end of last week stalled on Wednesday and the price closed back below the 50- and 200-day SMAs.
A lower close today could well signal that a new move lower had begun.
Buyers will need the price to regain the C$1.35 level and then push on above Tuesday’s high C$1.3525 to suggest that they are in the ascendant again.
This information has been prepared by IG, a trading name of IG Markets Limited. 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
