Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

EUR/USD, GBP/USD and AUD/USD show potential for further upside

EUR/USD, GBP/USD and AUD/USD show potential for another leg higher as the dollar eases off ahead of next week’s FOMC meeting.

Video poster image
Transcript

EUR/USD surges after consolidation phase

EUR/USD finally broke higher from its consolidation phase, with price remaining within a trend of higher highs. That recent failure to break below $1.1572 was telling, with the 76.4% Fibonacci level ultimately providing a good buying opportunity.

We are looking at a clear bullish short-term trend set against a bearish longer-term picture. With that in mind, further upside should be expected until we see the price break from this trend of higher lows (below $1.1582).

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD rebounds but risks another move lower here

GBP/USD has been largely consolidating this week, with price drifting lower in the wake of the gains seen in the first three-weeks of October.

There is a good chance that this current phase is a precursor to us heading higher, but bullish positions are favoured above $1.3829. Until then, there is a risk we see this pair fade to continue the recent retracement phase.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD continues to move higher as pair hits three-month high

AUD/USD has been on a consistent uptrend over the course of October thus far, with the price rising back into levels not seen since July.

That trend looks likely to persist from here, with a break back below the $0.7453 level required to negate this bullish trend.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.