EUR/USD, GBP/USD and AUD/USD rebound towards resistance
EUR/USD, GBP/USD and AUD/USD rebound, but will this mark the beginning of a bullish phase or simply a precursor to another leg lower?
EUR/USD reverses higher after recent declines
EUR/USD is on the rise this morning, with a rally through $1.1239 providing a bullish signal for the pair. Coming off the back of a rally back into the $1.1353 level, there is a possibility that we are seeing the pair prepare for a bullish breakout through that key threshold.
For now, there is a strong chance we will see further upside as we build upon this bullish breakout. However, we will ultimately need to break that $1.1353 level to negate the notion that we are simply consolidating within a topping pattern over recent weeks.
GBP/USD reversing lower from Fibonacci resistance
GBP/USD has been on the rise since Fridays low of $1.2314, with price rising back into the 61.8% Fibonacci resistance zone. However, the short-term trend remains bearish unless we see a break through the $1.2437 swing high.
With that in mind, it makes sense to expect a bearish turn from either the 61.8% or 76.4% Fibonacci levels as the trend comes back into play.
AUD/USD rises towards key breakout level
AUD/USD has also been on the rise, following on from a decline into the 76.4% Fibonacci level on Friday night. The wider creation of higher lows points towards a potential rally back towards the $0.6974 region, with a rally through the $0.6895 required to signal that impending rally.
As such, watch out for whether we see that $0.6895 level broken as a precursor to further upside. The ability to break that level will tell us plenty about where we go from here.
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