EUR/USD, GBP/USD, and AUD/USD recovery underway yet hurdles remain
EUR/USD, GBP/USD, and AUD/USD have been recovering after a recent dollar gains. However, with key hurdles up ahead, there are still some questions to answer for bulls.
EUR/USD gains ground from Fibonacci support
EUR/USD has been gaining ground following a period of dollar strength that has seen the pair drop into the 76.4% Fibonacci support level. The rebound from that level has now started to slow, with the pair seeing some signs of weakening.
Crucially, while we have started to see the bulls come into play, there are still questions that need answering for the wider bullish picture to come back into play. Most notably, a rise through the $1.2284 swing-high would bring about a fresh bullish signal. Until then, watch out for potential weakness from this short-term Fibonacci zone of $1.2226-$1.2249.
GBP/USD starts to reverse from key resistance
GBP/USD has been outperforming over the course of this week, with the rise into the prior peak of $1.3703 being completed overnight.
That level is going to be key here, with price already showing signs of potential weakness this morning. As such, the reaction to this level will dictate the state of play here, with a break and hold above that point required to bring a bullish continuation signal.
AUD/USD rebounds from Fibonacci support
AUD/USD has rebounded from the 76.4% Fibonacci support level this morning, with the pair seeing sharp gains yesterday.
However, we have started to see some consolidation given the continued trend of lower highs. That pattern means we will be looking out for a potential break through the $0.7799 swing-high to signal an end of the recent pullback and continuation of the wider uptrend.
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.
