EUR/USD, GBP/USD and AUD/USD slump as the dollar dominance returns
EUR/USD, GBP/USD and AUD/USD head sharply lower, with the wider bearish trends coming back into play.
EUR/USD breaks lower, heralding the potential return of dollar dominance
EUR/USD has taken another major step lower this week, with the price collapsing through the key $1.0122 support level to draw a line under the recovery seen throughout much of July and early-August.
Ultimately, if you believe markets are due another leg lower, then by proxy, we should also see the dollar push into another period of dominance too. With that in mind, further downside seems likely, with any short-term upside moves deemed a selling opportunity unless the price break the latest swing high (currently $1.0203).
GBP/USD breaks support, with further downside likely
GBP/USD has also broken through key support, with the move below $1.2003 bringing about the completion of a double top formation.
The wider downtrend does highlight the potential for another bout of weakness in the event that the wider risk-off sentiment returns. With the price continuing to decline, sentiment has clearly taken a turn for the worse. As such, a bearish outlook holds here, with a move up through the latest swing-high of $1.2142 required to bring about a more positive view.
AUD/USD continues its decline as it heads towards major support level
AUD/USD continues its downward trajectory this morning, with the pair moving ever closer to the key $0.6869 swing-low.
That support level is going to be crucial here, with a move through that point ending the recent recovery phase to bring confirmation that the wider bearish trend is back in play. As such, watch for the reaction to $0.6869, with a break below that point bringing expectations of further weakness for the pair.
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.
