EUR/GBP and USD/CAD fall back, while AUD/USD consolidates
The euro is retreating against the pound, as is the US dollar versus its Canadian counterpart. AUD/USD is holding firm near recent highs.
EUR/GBP retreats from 50-day moving average
The bounce here has carried EUR/GBP back to the 50-day simple moving average (SMA), which has acted to cap gains over the past three weeks.
A fresh decline from here would then target last week’s lows at £0.85, and resume the ongoing downtrend.
A close above the 50-day SMA and then above the February highs at £0.858 would mark a more bullish development.
AUD/USD consolidation continues
AUD/USD continues to consolidate around the highs hit last week, shrugging off weakness at the beginning of the week.
If this consolidation resolves into a move higher, and breaks above the highs at the end of last week, then it will continue to recoup the ground lost in the opening weeks of the year.
A short-term pullback could target the 200-day SMA, or a deeper pullback would head towards rising trendline support from early February.
USD/CAD under pressure
The move higher with USD/CAD from the end of last week stalled on Wednesday and the price closed back below the 50- and 200-day SMAs.
A lower close today could well signal that a new move lower had begun.
Buyers will need the price to regain the C$1.35 level and then push on above Tuesday’s high C$1.3525 to suggest that they are in the ascendant again.
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