EUR/USD, GBP/USD, and AUD/USD decline could bring buying opportunity
EUR/USD, GBP/USD and AUD/USD ease back, but short-term weakness could bring buying opportunities
EUR/USD turns lower after recent rise
EUR/USD failed to hold on to its gains after a rally back towards the $1.2189 resistance level yesterday, with the pair turning swiftly lower despite a rise in early trade. The break below $1.2081 is not ideal for bulls, although the deep nature of this rebound does point towards a weakening bearish trend.
With the stochastic starting to turn upwards, there is a chance we could see the bulls come back into play over the short-term. However, once again we would need to see a break through the $1.2189 level to negate the recent downtrend that has been in play. With that in mind, while we could see a short-term move higher, there is still a risk of further downside until we break from this bearish pattern.
GBP/USD pullback brings potential buying opportunity
GBP/USD has been easing back overnight, with the pair giving back some of the gains seen so far this week. GBP/USD has been a steady outperformer of late, and that uptrend doesn’t look likely to end here.
With that in mind, this current retracement looks like a potential buying opportunity, with a break below $1.3775 required to negate this bullish view. Until then, further short-term weakness would simply be viewed as a better buying opportunity as we move towards the deeper Fibonacci levels.
AUD/USD weakens into deep retracement
AUD/USD has similarly been on the back foot, with the pair moving lower after a rally into the $0.7805 resistance level. That weakness could be the start of something more troubling, but for now it simply looks like a likely retracement and buying opportunity.
With that in mind, bullish positions are favored here, with a break back below $0.7718 required to negate this bullish view.
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