EUR/USD, GBP/USD and AUD/USD likely to continue uptrend despite wobbles
EUR/USD, GBP/USD and AUD/USD decline after recent gains, but will this provide another buying opportunity?
EUR/USD continues to grind higher
EUR/USD has consistently gained ground over the course of the week, with Tuesday and Wednesday seeing the best price action within that period. While we are still grinding higher, the momentum appears to be waning in what could a sign of a potential impending pullback. Such a move lower would likely take the form of a retracement back towards trendline support.
However, we would need to see a break below the $1.154 to signal such an event coming into play. With that in mind, such a pullback would simply look to provide a bullish buying signal, rather than a short-term selling opportunity. As such, the uptrend remains intact, with any break lower likely to bring another good buying opportunity. We would ultimately need to see the $1.137 level broken to bring about a wider bearish reversal signal.
GBP/USD continues to struggle in bid to break higher
GBP/USD has been consolidating over the second half of the week, with dollar weakness being counteracted by worries over Brexit talks.
Despite that, the overnight gains did take us back into Tuesday’s peak of $1.2768. Unfortunately, we are seeing that resistance level hold, with the price turning lower this morning. Ultimately, this consolidation phase looks set to continue until we see a break through $1.2768 (bullish), or $1.267 (bearish).
AUD/USD pullback could bring buying opportunity
AUD/USD has been moving lower since the Wednesday peak, with fears over the US-China relationship impacting the Australian dollar.
However, unless we see the $0.6963 level broken, this pullback could simply provide another buying opportunity. As such, while we could see further short-term downside, watch out for the bulls to potentially come back into play around trendline and Fibonacci support.
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.
