EUR/GBP and USD/CAD losses stemmed, while AUD/USD reverses course
While EUR/GBP has seen its declines stall, and USD/CAD is still making some modest upside progress, the Aussie has come under pressure after the Reserve Bank of Australia left rates unchanged.
EUR/GBP declines stemmed for now
EUR/GBP fell back over the past two weeks, but further declines have been stalled for the time being.
Sellers have been unable to drive the price below £0.855, with buyers resisting this and any continuation of the pullback from the mid-July highs.
On the other hand, over the past three sessions the price has also resisted any move above the 50-day simple moving average (SMA). This leaves the pair in a tight range. A close below £0.855 denotes further weakness, while a move back above £0.86 would signal another attempt to move back to the July highs could be underway.
AUD/USD slumps after RBA holds rates unchanged
The Reserve Bank of Australia's (RBA) decision to leave rates unchanged hobbled the Aussie’s attempts to rally, though AUD/USD remained above the lows of the previous two sessions.
Sellers will now be looking for further reinforcement of their view with a drop below $0.665, which might open the way to the $0.66 lows of late-June. Below this the longer-term view sees $0.65 come into play as a target.
A recovery above the 200-day SMA might provide a renewed bullish view and suggest that another push towards the $0.69 highs of June and July was in the offing.
USD/CAD edges higher off July low
USD/CAD has steadily recovered over the past three weeks, though the downtrend from May is still in place.
A steady recovery from C$1.31 now targets the declining 50-day SMA, while above this the July high around C$1.337 is the next target, an area that was resistance in July and support back at the end of April.
In the short-term, a close back below C$1.3155 would see the price break below trendline support, and could then open the way to fresh leg lower.
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