EUR/USD, GBP/USD and AUD/USD rally, yet questions emerge
EUR/USD, GBP/USD and AUD/USD gain ground, yet key hurdles remain in a bid to maintain a bullish trend.
EUR/USD rolling over after brief rebound
EUR/USD managed to rebound from the $1.0768 resistance level on Thursday, with the pair seemingly ending a period of significant declines. The ongoing battle between the European Central Bank (ECB) and German Constitutional Court could depress the euro for the time being, although the notion of a restricted quantitative easing (QE) programme should really hold back stocks rather than the currency.
Nevertheless, we are seeing EUR/USD rolling over already, with the stochastic having broken back below the 80 threshold. The key level to watch here is $1.0815, with a break below there signalling a likely next leg lower for the pair. To the upside, a break through $1.0875 would point towards a continuing of this recent rebound.
GBP/USD attempts to recover with consolidation zone
GBP/USD has been on the rise since Thursday's low, with the pair remaining within a consolidation phase that has seen the price action restricted to the $1.2247-$1.2647 range for over a month now. Ultimately, we need to see a break through one of those thresholds to signal a way out of this range.
Until then, there is a good chance we continue to regain ground in a bid to return to the upper echelons of this consolidation. To the downside, watch for whether we break the $1.2356 level. Should that occur, it could signal a impending move towards the key $1.2247 low once more.
AUD/USD back into key resistance zone
AUD/USD has been on the rise over the course of the past week, with the pair pushing back into the $0.657 resistance level established in late April. That previous peak is also joined by an inside trendline, which has formed both support and resistance over the past month.
With that in mind, we are trading at a crossroads, with a break through this zone of resistance providing us with a signal that this recent uptrend is going to continue.
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