EUR/USD, GBP/USD and AUD/USD rebound, but will it last?
EUR/ USD, GBP/USD, and AUD/USD regain some lost ground, yet it is the euro which looks like the outperformer here.
EUR/USD rallies into SMA resistance
EUR/USD has managed to break out from the short-term downtrend, with the pair ultimately failing to build on the tentative break through a long-term trend support.
With the price having rallied into the 200-day simple moving average (SMA), there is a good chance that we could see the market drift lower for the short term given the prior respect of this indicator. However, whether that pullback occurs or not, things are looking much more optimistic for the trajectory of this pair, with further upside likely around the corner.
GBP/USD gaining ground, yet further downside seems likely
GBP/USD has started to gain ground over recent days, with the pair moving towards yesterdays high of $1.2188.
However, these gains look like a precursor to further downside, with a break above $1.225 required to negate that bearish outlook. As such, further gains could provide us with a shorting opportunity around $1.22-$1.221.
AUD/USD on the rise, yet resistance remains ahead
AUD/USD has regained some ground in the wake of the Reserve Bank of Australia (RBA) decision overnight. They chose to keep rates steady as expected, yet the tone allowed expectations of a September cut to creep higher.
In terms of the chart, the upside we have seen this morning takes place below a crucial resistance zone, with the $0.6827-$0.6832 zone marking the historical lows that formed a wider descending triangle. The break below that level was notable, and thus it makes sense that any bullish short-term picture would require a break through that resistance zone. Until then, the downtrend still remains intact. Utilising the Bollinger band, we can see that the middle band has been reached, which has provided the bearish reversal point on the past two occasions.
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.
