EUR/USD, GBP/USD and AUD/USD decline, as downtrends remain intact
EUR/USD, GBP/USD and AUD/USD continue to sell off, yet questions remain over the longevity of these moves.
EUR/USD rally brings about bullish short-term possibilities
EUR/USD sold off for much of last week, with the price hitting a two-year low. However, we are seeing tentative signs of strength following Friday’s rally.
For the short term, we have key trendline and horizontal ($1.0959) resistance to overcome. However, with momentum reversing higher off the back of a retracement, such a break could occur. Should we see those levels overcome, it would point towards a wider retracement coming into play. However, until $1.0959 is overcome, the short-term bearish trend remains relevant.
GBP/USD continues to drift lower
GBP/USD has been on the slide since breaking below the $1.2413 and $1.2393 support levels.
That bearish trend looks likely to continue until we see something to tell us otherwise. Thus, the bearish outlook remains in play unless the price breaks through the $1.2331 swing high established on Friday.
AUD/USD declines into key support zone
AUD/USD has moved to the bottom of its recent consolidation zone, with the price breaking through trendline support.
Down below, we have a cluster of Friday’s low, Wednesday’s low, and the 76.4% Fibonacci retracement at $0.6736. A break below this zone of support would serve to provide a bearish continuation signal. It would also raise questions over whether we are gearing up for an ultimate break back down to $0.6687. As such, watch out for how the pair responds to this support zone as a gauge of impending price action.
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