EUR/USD, GBP/USD and AUD/USD move up to recover losses
Renewed USD weakness has allowed the euro, sterling and Aussie to make back some lost ground from earlier in the week.
EUR/USD reverses bearish move
Sellers seemed to have gained the upper hand with EUR/USD yesterday, with the continued retreat from Monday’s highs. Some early gains this morning have helped to stabilise the situation for the buyers but overall the broadly gloomy tone remains firmly in place.
While daily stochastics have now rolled over with a bearish crossover, the price is testing rising trendline support from the late November low. A move below $1.1265 would confirm a bearish view.
GBP/USD surge shows no sign of slowing
The counter-trend bounce in cable goes on here with GBP/USD, as the price pushes on back towards the 100-day simple moving average (SMA) at $1.3558. Bearish hopes were dashed yesterday with the solid move higher, which continues today and suggests we could see further strength into the second half of the week.
Of course, this is still a bounce from an overstretched lower low, so any lower high below $1.374 would still leave the downtrend intact.
AUD/USD edges higher
After Monday’s losses AUD/USD rebounded yesterday, but it remains stuck below the 50-day SMA ($0.7241) for the time being. A drop back below $0.72 would reinforce the bearish view and help reaffirm the potential of Monday’s drop to create a lower high.
Further gains above $0.7277 would put a move back to the early November swing high at $0.7364 in view.
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