EUR/USD, GBP/USD, and AUD/USD at risk of a bearish turn
The dollar shows signs of coming back into strength, with EUR/USD, GBP/USD, and AUD/USD at risk of rolling over once again.
EUR/USD at risk of another bearish phase
EUR/USD has been attempting to stabilize itself over the past 24-hour, with the sharp declines seen earlier in the week raising the likeliness of the wider bearish trend coming back into play. With price having respected the 200 simple moving average (SMA) and trendline resistance on Monday night, this latest move lower does signal the potential end to this latest phase of gains for the pair.
Ultimately, the wider trend very clearly remains bearish and thus it makes sense to expect that to kick in once again before long. With that in mind, watch out for a break below the $1.0096 swing-low to bring the bears back into play once again. To the upside, we would need to see price move through the $1.021 level to bring about a more positive mindset.
GBP/USD showing cracks in the bullish recovery story
GBP/USD has similarly been under pressure thanks to a recent risk-off move permeating throughout markets this week. That move back into the dollar has helped take GBP/USD down through trendline support following a rally up towards the 61.8% Fibonacci resistance level. With a wider bearish trend in play, there is a risk of another protracted move lower if we end this current recovery phase.
With that in mind, watch for a break below $1.2063 to bring an end to this rebound, raising the likeliness that the bears come back into the play once again. To the upside, we would need to see the intraday selloff seen over recent days eradicated by pushing up through $1.2207.
AUD/USD on the rise after improved export data
AUD/USD has enjoyed a strong start to the day, with the Australian dollar on the rise thanks to better-than-expected export data for June (5.1%). However, questions remain given the wider bearish trend in play here. The breakdown through $0.6911 does highlight the potential for the bearish trend to kick in once again here.
With that in mind, the gains we are seeing over the past 24-hours could represent a retracement before the pair heads lower once again. While a move back up through the $0.7047 level would bring a more positive outlook, the recent move back below $0.6911 does mean that this current rise is expected to falter before long.
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.
