Dollar weakness allows AUD/USD to rise and USD/CAD to falter, while EUR/GBP rally stalls
An easing of dollar strength after recent gains has allowed the Aussie and the Canadian dollar the chance to rally. Meanwhile, EUR/GBP’s rally has paused for now.
AUD/USD rallies off support
For the moment, the selling appears to have been halted around $0.63 for AUD/USD.
A short-term bounce might target the 50-day simple moving average (SMA), and then trendline resistance from late September, but the bearish view remains firmly in place while the price is below $0.65.
A close below the $0.627 level would ignite fresh downside and see the pair head further towards last year’s lows.
USD/CAD drops back below C$1.37
Some of the bullish momentum seen last week has faded, though the overall rally appears intact.
In the short-term any pullback towards the rising 50-day SMA could be a buying opportunity, with a close below C$1.356 putting a more substantial dent in the bullish view.
A rally back above C$1.373 would put the buyers back in charge and see the USD/CAD's price target of the late September highs once again.
EUR/GBP rally stalls
The price of EUR/GBP saw upward momentum stall on Monday, but the overall bounce is still in place.
A pullback towards trendline support from the August lows could see more buyers emerge, while additional gains target a move above £0.873.
A close below £0.865 would mark a potentially bearish development, though the October low around £0.862 could provide support.
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