AUD/USD and EUR/JPY dive sharply and EUR/GBP edges higher
Risk-off sentiment continues to drive the Aussie dollar down against the dollar and the euro down versus the yen. Meanwhile the euro is recouping some losses against the pound.
AUD/USD slump gathers pace
The AUD/USD pair has gone from a seven-month high in mid-July to a three-month low in the space of three weeks.
It has now slumped below the June lows at $0.6576, and is now on course to the early May lows at $0.6482. After such a rapid move some consolidation would not be surprising, but the bearish view remains in place unless we see a recovery back above $0.66.
EUR/GBP holds around £0.84
The decline in EUR/GBP has slowed for now, and early trading has seen the euro strengthen versus sterling.
Once more the price is holding above £0.84. If this forms a short-term low, then the price may test trendline resistance from the May highs, before moving on to challenge the 50-day simple moving average (SMA).
EUR/JPY slumps to 3-month low
The last big fall in EUR/JPY took place in November. The past two weeks have seen the price drop over 1000 points, taking the price below the June lows, the 50-day SMA and then the 100-day SMA.
Now the 200-day SMA comes into view, along with the early May low around ¥164.12. So far, there is no sign of any recovery in the price.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
