EUR/USD and AUD/USD bottoming out, while GBP/USD hit by political developments
The euro has reached vital support, after steady losses in recent days, while AUD/USD is also looking to rebound. Meanwhile, sterling traders brace for the arrival of a new PM.
EUR/USD hits crucial support zone
EUR/USD finds itself in a vital zone of support, one that has held since mid-June. If the price can hold around $1.12, taking advantage of intraday oversold conditions, then a rebound towards trendline resistance at $1.125 may come into play.
The price needs to clear previous lower highs at $1.128, $1.13 and $1.132, however, to suggest a firm breakout is in play. A move through the $1.12 support zone and below $1.118 would reinforce the prevailing bearish view and bring the May low at $1.112 into view.
GBP/USD under pressure
While a new UK prime minister (PM) is appointed today, much of the news and speculation about a ‘no deal’ is already in the price for GBP/USD. Thus, the price may be able to rally in the short term.
Friday’s peak has created a new lower high, but the price has managed to stabilise around $1.245. A bounce from here would target $1.255, while further declines head back to $1.24. The prevailing trend is still lower, but if the price can establish a higher low then we may see some bullish pressure develop.
AUD/USD attempts to bottom out
A steady decline from yesterday’s high begins to suggest that the AUD/USD price is losing momentum, but oversold conditions might provide a bounce that saves the longer-term rally seen over the past month.
A recovery above $0.705 would provide a more bullish view and target $0.708, the highs from last week. A move below $0.70 is needed to cement a bearish view in the short term, to open the way to $0.697 and then $0.691.
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.
