EUR/USD, GBP/USD and AUD/USD rally towards key resistance
EUR/USD, GBP/USD and AUD/USD continue to gain ground, yet major resistance lies ahead.
EUR/USD continues its trend higher
EUR/USD gains have been incredibly consistent, with the pair trading at the highest level since mid-March. There are few signs that this is about to reverse, with the current move higher still around the middle of the standard deviation channel.
Thus we could have further to run within this latest leg higher, where any pullback will be deemed a buying opportunity unless the price falls below $1.1161.
GBP/USD rallies towards key resistance level
GBP/USD has similarly been on the rise, as the dollar comes under pressure for another day. However, the warning sign here is that we are approaching a key area of resistance, with two April rallies having failed around the $1.2648 level.
As such, the bullish short-term trend remains intact for now, yet a break through this resistance zone would bring greater confidence of it persisting beyond the short term. To the downside, a break below the $1.2527 level would be required to start building a bearish reversal picture.
AUD/USD consolidates after GDP decline
AUD/USD has been consolidating overnight, following a better-than-expected first quarter (Q1) gross domestic product (GDP) reading of -0.3%. While the intraday uptrend points towards further upside to come, we have a major hurdle to overcome at $0.7032 (December high).
For now, further upside does look likely, with a break back below $0.6842 required to start bringing a more bearish picture into play.
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