EUR/USD and GBP/USD fade, while AUD/USD continues to gain ground
EUR/USD, GBP/USD and AUD/USD have been gaining ground. However, is this the beginning of a wider bullish phase or just a short-term blip?
EUR/USD retraces back into notable support level
The EUR/USD rebound has faltered after a deep retracement into the 61.8-76.4% Fibonacci zone. That points towards a potential bearish reversal coming back into play before long. With the price drifting lower since Thursday’s peak, we have seen a decline back into the $1.1018 swing low. With the price respecting that level, we could see a short-term rebound from here.
However, it looks likely that it will turn lower in the near term, with markets expected to turn their gaze to Thursday’s European Central Bank (ECB) meeting before long. A break through the $1.1154 peak would bring a more bullish picture, but a bearish outlook will remain in play until that happens.
GBP/USD starts to reverse recent gains
GBP/USD managed to gain a significant amount of ground last week, with optimism that a no deal can be delayed or averted driving the pair higher.
However, we are starting the week in a very different fashion as the price reverts lower. Given the amount of ground gained throughout last week, there is plenty of downside room to move into even if we are retracing. The break through $1.2310 points towards a high likeliness that this is a retracement. Therefore, a break below $1.2210 would bring greater confidence of a deeper fallback, with a retracement around $1.2100 a distinct possibility.
AUD/USD continues to gain ground
AUD/USD managed to break through an important zone of resistance last week, paving the way for further upside. That cluster of previous support, around $0.6822-$0.6831, was a key resistance area that stood in the way of a wider bullish phase coming into play.
With this in mind, look out for further upside from here, with a break back below $0.6807 required to negate this bullish short-term view.
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.
