EUR/USD, GBP/USD and AUD/USD consolidate within wider downtrends
EUR/USD, GBP/USD and AUD/USD declines look likely to continue, with GBP the one potential outperformer despite recent losses.
EUR/USD consolidates within downtrend
EUR/USD is back into consolidation phase within the downtrend that has been dominating the past week.
That trend is expected to come back into play soon enough, and thus the short-term upside we are seeing this morning provides a selling opportunity. This bearish outlook remains in play unless we see a break through the $1.0851 resistance level.
GBP/USD could regain ground after hitting Fibonacci support
GBP/USD has seen short-term losses after rallying into the $1.307 resistance level on Thursday. The subsequent decline has taken us into the 76.4% Fibonacci support level at $1.2974, with the price moving swiftly higher in response.
With the price now moving into trendline support, there is a good chance we will see the bulls come back into play from here as we seek to continue the recent uptrend. A break below $1.2974 would provide an initial signal that this recent period of weakness could continue. However, a break below $1.2944 would be required to negate the bullish outlook that is currently in play.
AUD/USD rally unlikely to last
AUD/USD is regaining ground, following the recent decline into the crucial $0.6671 support region. With the price regaining ground, we have seen little to signal that this is an end to the selling.
The price is forming a bearish rising wedge formation, which signals a likely impending leg lower for the pair. Thus far we have hit the 50% Fibonacci resistance level within this recent rebound. A continued push higher would look towards the 61.8% resistance level as the next area to watch. However, in either case, this current move higher looks like a retracement and precursor to further downside. A break through $0.6733 would be required to negate this bearish outlook.
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