EUR/USD, GBP/USD, and AUD/USD struggle to break higher
EUR/USD, GBP/USD, and AUD/USD struggle to break higher, with volatility in wider market sentiment feeding through into the FX space.
EUR/USD heads lower once more
EUR/USD has been heading lower after a rebound into the 61.8% Fibonacci resistance level on Wednesday. With the pair back below the 76.4% Fibonacci level this morning, there is a risk of a wider reversal if we see a break below the $1.2058 swing low.
Until we see that level break, it makes sense to follow the short-term trend which is currently bearish. As such, further weakness is expected unless we see a break through the $1.2222 swing high.
GBP/USD struggles to break through key resistance
GBP/USD rallied into the crucial $1.3704 resistance level once again yesterday, with the pair turning lower for the third time in two-weeks. A rise through that resistance level would bring about a bullish continuation signal.
However, with price falling back, there is a chance we are retracing ahead of another push into resistance. With that in mind, sentiment will be dictate by whether we break through either $1.3612 or $1.3704.
AUD/USD falls back towards key support
AUD/USD has been attempting to break out from its recent consolidation phase, with bulls hoping the recent push higher will provide a bullish breakout through $0.782. However, with price falling back towards the $0.7721 swing low we are looking at a potential bearish short-term signal if price breaks below that point.
With that in mind, this current pullback could be either a retracement or precursor to a bearish signal. As such, whether we break $0.7721 or not will tell us a lot about how sentiment shapes up as we head into the weekend.
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