EUR/USD, GBP/USD and AUD/USD turn upward after latest decline
EUR/USD, GBP/USD and AUD/USD show potential for short-term rebound after latest pullback.
EUR/USD starts to show strength after recent pullback
EUR/USD has been on the back foot over the course of the past week, with the price falling back after a period of gains that took the pair into a fresh five-month high on Monday.
The decline seen in the Spanish consumer price index (CPI) figure yesterday did lift hopes of a wider turn lower for eurozone inflation when it is released at 10am UK time. Keep a close eye out for that release as a driver of euro and market volatility today.
With the pair currently trading within a trend of higher highs and lows, there is a good chance we see another bullish turn to maintain that pattern. As such a bullish view holds unless we see the price fall back below the $1.0222 swing low.
GBP/USD pulls back from recent highs
GBP/USD has similarly been on the back foot for much of the week, with the price falling back from a three-month high established on Thursday.
The recovery seen for this pair has been largely driven by risk-on sentiment permeating throughout global markets. With that in mind, traders will want to keep a close eye out for Friday’s US jobs report as a potential driver of price action.
For now, this latest pullback looks to have provided us with another retracement, where the bullish trend playing out over the course of October and November remains unless we see a move below $1.1738 support.
AUD/USD on the rise, but wider bearish trend remains
AUD/USD has started to turn higher once again since yesterday’s low, with the pair largely consolidating over the course of the past fortnight.
That struggle to maintain the bullish price action that dominated the first half of the month came after a rise into the 61.8% Fibonacci resistance. That level remains a key hurdle to overcome for bulls.
Whether we do see another leg higher or not, the wider bearish trend does show the potential to kick in once again before long. A rise through the $0.7137 swing high would be required to negate that long-term bearish trend.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
