Brexit fears hold back GBP/USD, while EUR/USD, and AUD/USD gain ground
EUR/USD and AUD/USD gain ground on dollar weakness, while Brexit fears hold back GBP/USD as we head into a critical weekend.
EUR/USD rally highlights likely push higher before long
EUR/USD managed to break through the $1.2134 swing high yesterday, bringing an end to the retracement phase seen over the course of the week. That rise does point towards a likely push through the $1.2174 peak before long, with the pair looking to continue the uptrend seen over recent months.
With that in mind, the weakness we have seen over the course of this morning looks like a short-term retracement before we push higher once again. As such, bullish positions are favoured unless we see a break below the $1.2059 swing low.
GBP/USD underperforms as Brexit fears increase
GBP/USD has been on the back foot as we approach what looks like a critical weekend for Brexit talks.
The recent rise into the 76.4% Fibonacci retracement level provided us with another bearish turn, with price now approaching the critical $1.3224–$1.3245 support zone. With that in mind, it makes sense to watch out for further downside in the event that this support zone breaks.
AUD/USD starts to ease back after recent surge
If GBP/USD is the underperformer, then AUD/USD is the outperformer, with the pair pushing sharply higher over the course of the week. That rise has taken us into the highest level since June 2018.
With that in mind, further upside looks highly likely, with the risk-on sentiment brought about by the vaccine being enhanced by sharp gains in commodity prices. As such, short-term downside provides entry opportunities to the upside. That bullish outlook holds unless we see a break below the recent swing low of $0.7373.
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.
