EUR/USD, GBP/USD and AUD/USD rebound provides bearish opportunities
EUR/USD, GBP/USD and AUD/USD rebound, yet recent downtrend highlights likely move lower before long.
EUR/USD rebound looks likely to falter
EUR/USD has been regaining ground overnight, with the pair moving against the recent downtrend. However, we remain within that trend for the moment, with the price having started to weaken around the 61.8% Fibonacci level.
A break through $1.0867 would bring about a more bullish picture, yet until that happens this rally into a deep retracement looks like a good selling opportunity as much as anything.
GBP/USD on the rise despite Johnson hospitalisation
GBP/USD has managed to regain ground despite news of UK Prime Minister Boris Johnson's hospitalisation yesterday. With the price holding up around the 200-hour simple moving average (SMA), there is a good chance we will see further short-term upside.
However, with the price having dropped below the double top neckline of $1.2244, any short-term gains are likely to be a retracement before we move lower once more. That double top pattern does appear to signal a likely reversal coming into play, with a break through $1.2475 required to negate this view.
AUD/USD rise unlikely to last
AUD/USD has also been on the rise, with the pair moving into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels.
Utilising the standard deviation channel, we can see that this conforms with the type of pullbacks we have seen throughout the sell-off seen over the past week. With that in mind, the bears are likely to take control from here, where a rise through $0.6075 would be required to negate this negative bias.
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
