EUR/USD, GBP/USD and AUD/USD all continue to fall
Dollar strength and ECB jawboning at the main elements at play in FX markets at present, as key pairs continue to retreat for the time being.
EUR/USD continues to weaken
EUR/USD has fallen sharply for another day, as the European Central Bank (ECB) does its best to talk the currency down.
The pair now finds itself back at the rising trendline from the beginning of August. A break above $1.184 would signal a rally through the upper band of the descending channel seen over the past two days. Alternatively, the price will need to push below $1.178 to consolidate the bearish view and open the way to further downside.
GBP/USD retreats again
Dollar strength continues to weigh on GBP/USD, with yesterday’s attempt to rally faltering and leading to further downside.
A possible rally through $1.332 would mark a break to the upside from trendline resistance, while a move back below $1.3254 would put the price back below the twin peaks of mid-August and mark a more bearish development.
AUD/USD resumes its move lower
The weakness here is an interesting counterpoint to the strength in equities, as AUD/USD retreats from the high seen at the end of August.
Intraday rallies have failed to gain traction, and the overall move lower continues. There is some distance before the August rising trendline comes into play, so bulls will hope that a higher low can be established at the 200-day simple moving average (SMA) of $0.7278.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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
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
Prices above are subject to our website terms and agreements. Prices are indicative only
