EUR/USD, GBP/USD and AUD/USD turn upward after latest decline
EUR/USD, GBP/USD and AUD/USD show potential for short-term rebound after latest pullback.
EUR/USD starts to show strength after recent pullback
EUR/USD has been on the back foot over the course of the past week, with the price falling back after a period of gains that took the pair into a fresh five-month high on Monday.
The decline seen in the Spanish consumer price index (CPI) figure yesterday did lift hopes of a wider turn lower for eurozone inflation when it is released at 10am UK time. Keep a close eye out for that release as a driver of euro and market volatility today.
With the pair currently trading within a trend of higher highs and lows, there is a good chance we see another bullish turn to maintain that pattern. As such a bullish view holds unless we see the price fall back below the $1.0222 swing low.
GBP/USD pulls back from recent highs
GBP/USD has similarly been on the back foot for much of the week, with the price falling back from a three-month high established on Thursday.
The recovery seen for this pair has been largely driven by risk-on sentiment permeating throughout global markets. With that in mind, traders will want to keep a close eye out for Friday’s US jobs report as a potential driver of price action.
For now, this latest pullback looks to have provided us with another retracement, where the bullish trend playing out over the course of October and November remains unless we see a move below $1.1738 support.
AUD/USD on the rise, but wider bearish trend remains
AUD/USD has started to turn higher once again since yesterday’s low, with the pair largely consolidating over the course of the past fortnight.
That struggle to maintain the bullish price action that dominated the first half of the month came after a rise into the 61.8% Fibonacci resistance. That level remains a key hurdle to overcome for bulls.
Whether we do see another leg higher or not, the wider bearish trend does show the potential to kick in once again before long. A rise through the $0.7137 swing high would be required to negate that long-term bearish trend.
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