EUR/USD, GBP/USD and AUD/USD rebound provides bearish opportunities
EUR/USD, GBP/USD and AUD/USD rebound, yet recent downtrend highlights likely move lower before long.
EUR/USD rebound looks likely to falter
EUR/USD has been regaining ground overnight, with the pair moving against the recent downtrend. However, we remain within that trend for the moment, with the price having started to weaken around the 61.8% Fibonacci level.
A break through $1.0867 would bring about a more bullish picture, yet until that happens this rally into a deep retracement looks like a good selling opportunity as much as anything.
GBP/USD on the rise despite Johnson hospitalisation
GBP/USD has managed to regain ground despite news of UK Prime Minister Boris Johnson's hospitalisation yesterday. With the price holding up around the 200-hour simple moving average (SMA), there is a good chance we will see further short-term upside.
However, with the price having dropped below the double top neckline of $1.2244, any short-term gains are likely to be a retracement before we move lower once more. That double top pattern does appear to signal a likely reversal coming into play, with a break through $1.2475 required to negate this view.
AUD/USD rise unlikely to last
AUD/USD has also been on the rise, with the pair moving into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels.
Utilising the standard deviation channel, we can see that this conforms with the type of pullbacks we have seen throughout the sell-off seen over the past week. With that in mind, the bears are likely to take control from here, where a rise through $0.6075 would be required to negate this negative bias.
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