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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD, GBP/USD, and AUD/USD rise unlikely to last

Dollar gains take a breather, yet this greenback strength looks likely to further hurt EUR/USD, GBP/USD and AUD/USD.

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EUR/USD turning lower to build on head and shoulders break

EUR/USD managed to break through the $1.2059 head and shoulders neckline yesterday, bringing a fresh bearish signal for the pair. While we saw some upside overnight, there is a strong chance we are on the cusp of another leg lower here.

While a break up through $1.2087 would weaken the bearish story somewhat, we would need to see the $1.2156 swing high broken to negate the current bearish outlook for the pair. Until then, further downside looks likely with a decline through $1.2011 bringing further confidence that this is not a fake-out scenario.

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

GBP/USD breakdown brings potential reversal signal

GBP/USD fell through trendline support yesterday, bringing price back into the $1.3609 swing low. That raises questions over whether this trend is going to continue apace or start to reverse. With the pair regaining ground this morning, there is still a chance we will continue to move higher here.

However, it makes sense to watch for a break through $1.371 and even $1.3758 to negate this latest breakdown. Nevertheless, until that upside break occurs, there is a chance we are priming for another turn lower here. As such, watch out for a potential bearish move here, with a break below $1.3609 solidifying this bearish outlook.

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

AUD/USD rally provides potential selling opportunity

AUD/USD is ahead of the curve on the selling front, with the pair already having hit a fresh 2021 low this week.

While price is on the rise this morning, we have trendline resistance up ahead that could limit these gains. A break up through the $0.7704 swing high negates this bearish outlook, yet it makes sense to look out for further downside until that break occurs.

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

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.

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