EUR/USD, GBP/USD and AUD/USD all fall back
Risk appetite is on the wane, as the early losses for the euro, sterling and Aussie against the dollar demonstrate.
EUR/USD drops back from Monday’s high
The EUR/USD price recovered the losses of Friday and continues to hold above the 200-day simple moving average (SMA) at $1.1853, confounding the sellers, but now it needs to push on back to, and then above, $1.1987, the highs for the month so far.
Even then a move above $1.20 could soon run into trendline resistance from the January peak. Sellers will want to drive the price back below $1.188 as a first step to opening the path to further downside.
GBP/USD pushes into support zone
It is now up to the buyers to hold the price of GBP/USD above the $1.38 support level, after the small bounce yesterday that saw the price hold the 50-day SMA.
A reversal here that then retakes $1.40 helps to revive the bullish view, while a drop below $1.375 would put the sellers back in control for the time being.
AUD/USD heads lower
Like many risk assets AUD/USD has turned neutral of late, unable to hold recent highs.
The next lines of possible support are $0.7621 and $0.7563, the former being the early-March low, and then on to the January low. So far there is little sign of a reversal that can recover last week’s highs and help to put the price back on an upward path.
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.
