EUR/USD, AUD/USD advances stall while EUR/GBP nears support
Outlook on EUR/USD, EUR/GBP and AUD/USD amid German consumer confidence and Australian retail sales data.
EUR/USD stalls marginally below last week’s $1.0965 high
EUR/USD comes off last week’s four-month high at $1.0965 despite German consumer confidence inching higher but remaining very low with no signs of a sustainable recovery in the months ahead.
While Monday’s low at $1.0926 isn’t giving way, overall upside pressure should remain intact. A rise above $1.0965 would engage the late June high at $1.1012 and the August peak at $1.1065.
A bullish continuation remains the most likely scenario as long as Wednesday’s low at $1.0853 underpins on a daily chart closing basis.
EUR/GBP reversal off its six-month highs nears its early November low
Over the past couple of weeks EUR/GBP has swiftly come off its six-month high at £0.8766 amid the UK’s autumn statement and as the UK government looks committed to revive the UK economy which has led to pound sterling appreciation.
The early November low at £0.865 is thus back in view, a slip through which would put the 11 October low at £0.8617 on the cards and confirm a medium-term toppish technical formation.
Resistance above the 55- and 200-day simple moving averages (SMA), which currently cap at £0.868 to £0.8682, comes in along the breached August-to-November uptrend line which, because of inverse polarity, now acts as a resistance line at £0.8697 ahead of the July peak at £0.8701.
AUD/USD advances in 3 ½ month highs
AUD/USD’s advance in 3 ½ month highs has been slowed down as Australia retail sales unexpectedly fall with the cross slipping back from Tuesday’s $0.6631 peak.
The November accelerated uptrend line and 200-day SMA at $0.6589 to $0.6583 may offer support. While the next lower August and September highs and last Wednesday’s reaction low at $0.6522 to $0.6511 hold, the current medium-term uptrend will remain valid.
A rise above $0.6631 would have the early July high at $0.6705 in its sights.
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.
