EUR/USD, GBP/USD and AUD/USD push through key resistance levels
EUR/USD, GBP/USD and AUD/USD continue their countertrend recovery, with price breaking through key resistance levels.
EUR/USD breaks both trendline and parity resistance
EUR/USD has been on the rise of late, with risk-on sentiment seen throughout global markets bringing about a bout of downside for the dollar. That dollar decline has helped lift currency pairs such as EUR/USD, with further volatility ahead in the form of the Eurepean Central Bank (ECB) meeting tomorrow. Crucially, we have seen the price manage to break both trendline and $1.00 resistance this week.
That marks the first closed candle above this trendline since its inception in February. While this could mark the beginning of a wider bullish phase for the pair, there is still a good chance that he turns lower from the $1.0041 Fibonacci resistance level. The break above $1.00 is certainly notable, but it would take a rise through $1.0198 to truly bring an end to the bearish trend of lower highs seen over the course of the year. Until that occurs, another leg lower does still remain likely.
GBP/USD rebound pushes through key resistance
GBP/USD has continued its recovery this week, with the price managing to push up through the $1.1495 resistance in the process. Similarly, we have also seen the descending trendline taken out yesterday. Whether this is the beginning of a wider recovery phase remains to be seen, with the $1.1738 resistance level providing the next hurdle for the bulls.
Given that this represents that first true swing-high, such a break would be a notable event for the bulls. To the downside, a move below the $1.106 level would bring greater confidence that this recovery phase is over.
AUD/USD breaks through Fibonacci resistance
AUD/USD has managed to break through the 76.4% Fibonacci resistance level today, with the pair surging higher once again. The wider trend remains bearish unless we break through the $0.6547 swing-high.
Such a move would signal a potential wider retracement of the $0.7136-$0.617 selloff coming into play. However, until that break occurs, there is still a chance that we see price turn lower once again here.
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