EUR/USD, GBP/USD and AUD/USD support levels to dictate state of play
EUR/USD, GBP/USD and AUD/USD looks set for short-term downside, with key support being challenged.
EUR/USD back at key support as we await next big move
EUR/USD has been consolidating around the 61.8% Fibonacci retracement level, with the pair trading back at that same $1.1269 level this morning. The ability to break below that level will be key for the day, with a tightening Bollinger band pointing towards a potential jump in volatility.
Conversely, a rise through the $1.1312 swing high would bring about a more bullish picture for the pair. Ultimately, this sell-off looks like a retracement within an uptrend that kicked off throughout June. The sell-off, if we decline below the $1.1269 support level, would point towards a move into the $1.1235 level (76.4%) before the bulls start to come back into play.
GBP/USD consolidation looking likely to bring further downside
GBP/USD has been consolidating since Tuesday’s decline, with the pair essentially trading sideways through yesterday’s quiet Independence Day session.
The signal we are looking for to bring about a new bearish signal is a break below $1.2559. Should that occur, we would be looking for whether price manages will decline into the $1.2506 level or not. A break below that wider support level would signal the beginning of a new sell-off, negating the bullish picture that came with a rally through $1.2763.
AUD/USD turning lower once more after recent rally
AUD/USD is breaking below the notable $0.7015 support level this morning, following on from a pullback yesterday.
The ability to post an hourly close below $0.7015 is key to signaling a bearish picture for today at least. A break below $0.6956 would be required to bring about a wider bearish picture, yet the decline we are currently seeing points towards a wider retracement of that $0.6956-$0.7048 rally coming into play.
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
