EUR/USD, GBP/USD and AUD/USD take a breather after recent sell-off
EUR/USD, GBP/USD and AUD/USD try to stabilise after recent decline, but bears look likely to return.
EUR/USD rebound unlikely to last
EUR/USD has been attempting to regain ground since Friday’s low of $1.1664, with last week’s decline taking the pair into a nine month low. While the price has been regaining ground, that is viewed as a retracement rather than anything to get too excited about from a bullish perspective.
Another turn lower thus looks likely before long, with a rise through $1.1804 required to negate that bearish short-term outlook. Until then, this current rise looks likely to resolve in another move lower before long.
GBP/USD falls back towards key support
GBP/USD has declined through both the 61.8% and 76.4% Fibonacci support levels, with the price falling back towards the $1.3572 low from late July. A break below that support would negate any bullish sentiment developed by breaking through the $1.391 level.
While the price is rising in early trade, we have plenty of ground to make up before the bulls can feel confident that such gains will last. As such, unless we see the price break through the likes of $1.3786, short-term upside is likely to prove fleeting.
AUD/USD attempts to stabilise after recent breakdown
AUD/USD has been hit hard of late, with the break below $0.7316 ultimately giving way to another period of downside for the pair.
This bearish trend holds on both the short and long term, signalling expectations of further downside to come. With that in mind, it makes sense to look out for further downside, where the current rebound looks to represent a short-term retracement before we head lower once again.
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