EUR/USD, GBP/USD and AUD/USD gain ground after recent declines
EUR/USD, GBP/USD and AUD/USD regain ground, yet it is the pound which proves the outperformer in this resurgence.
EUR/USD regaining ground after recent declines
EUR/USD has managed to break out of a short-term downtrend, with the rise through $1.1027 pointing towards a potential period of strength to close out the week. There is a good chance that we are seeing a retracement of the wider decline from $1.1118, with further upside looking likely for a move towards a deeper retracement.
A break below $1.0992 would point towards this rally being over. However, it does look likely we will see another leg higher for the short term, with the 61.8%-76.4% Fibonacci retracement zone looking like an interesting area that could drive a bearish reversal for the pair.
GBP/USD surging higher after another deep retracement
GBP/USD once again managed to rebound from a very deep retracement yesterday, with the decline into trendline support ultimately resolving with a move higher. Yesterday’s Bank of England (BoE) rate decision provided the pair with a new bullish emphasis, and that upside is continuing this morning despite a period of overnight consolidation.
Given the uptrend see over the past two weeks, it makes sense to expect a continuation via a break through the $1.3175 resistance level. However, a break below $1.3075 would start to weaken that story.
AUD/USD upside likely to fail once more
AUD/USD gains have been somewhat limited, with the price rising back towards a short-term trendline resistance. Even the short-term downtrend remains intact for this pair, with further downside looking likely as a result.
A break through $0.6777 would be required to negate this short-term downtrend, and thus it makes sense to presume this pair will maintain this bearish trend unless we are shown otherwise.
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