EUR/USD, GBP/USD and AUD/USD gains unlikely to last
EUR/USD, GBP/USD and AUD/USD gain ground, yet wider bearish picture points towards potential for further downside.
EUR/USD rising, yet downtrend signals further downside
EUR/USD has remained within a downtrend throughout the week, with each short-term rally being greeted by another leg lower.
The standard deviation channel provides a rough idea of where the price should be contained within, highlighting the fact that this rally is likely to falter just like the times before it. With that in mind, a bearish outlook remains in play, with a rally through $1.0889 required to negate that view.
GBP/USD rallies into key resistance level
GBP/USD has seen a sharp surge over the past 24 hours, with the pair moving into the key $1.307 resistance level.
A break through that level would point towards another period of strength for the day ahead. As such, watch for whether we break through $1.307 or not as a guide of where we go from here.
AUD/USD likely to reverse lower after rally into Fibonacci resistance
AUD/USD has seen a week of two halves, with the gains seen on Monday and Tuesday giving way to consolidation with the peak coming around the 76.4% Fibonacci level.
The creation of lower highs since that peak does point towards a potential decline to continue the wider bearish trend. Watch for a break below the $0.6707-$0.671 zone to pave the way for such declines.
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.
