EUR/USD, GBP/USD and AUD/USD looking likely to gain ground
EUR/USD, GBP/USD and AUD/USD look set for further upside following short-term pullbacks.
EUR/USD rallies back into Fibonacci resistance
EUR/USD has seen a relatively volatile 24 hours, with initial losses reversing into another spike higher for the pair. With previous weakness coming around the 76.4% Fibonacci retracement level of $1.1055, the question of whether we can break through this level or not will be key today.
Ultimately, we would need to see a break through $1.1111 to bring about a more bullish outlook, and until then it makes sense to look for potential weakness here. That being said, a break below $1.099 would provide us with a more convincing bearish sell signal.
GBP/USD easing back after another sharp rally
GBP/USD is in consolidation mode this morning, as the pair settles off the back of yet another sharp rally. With the Brexit talks reaching a crescendo, volatility lies ahead. However, with UK Prime Minister Boris Johnson clearly in favour of a Brexit deal, there is likely to be further upside for the pound despite current talks running out of time.
The worry for markets is the possibility of a no-deal Brexit, and Johnson's recent action highlight a willingness to shift his position to bring about an orderly exit. As such, further upside seems likely before long, with the current pullback looking like a retracement. A break below the $1.2516 level would be required to bring about a more bearish picture.
AUD/USD pulls back into Fibonacci support
AUD/USD has been weakening from the 61.8% Fibonacci resistance level of $0.6809 this week. However, with short-term higher highs in play, the pullback into 76.4% support at $0.6734 brings about an interesting crossroads.
A rally from here could bring a deeper retracement, yet a break below $0.671 would signal that wider bearish picture coming back into play from here.
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.
