EUR/USD, GBP/USD and AUD/USD at risk despite recent gains
EUR/USD, GBP/USD and AUD/USD face the potential for a bearish turn despite recent gains.
EUR/USD pulling back as rally reaches key resistance zone
The recent EUR/USD uptrend has taken the pair back into the upper echelons of a long-term descending channel, with the ability to remain below the $1.1239 key to continuing that long-term bearish outlook. A break through that level would bring about a bullish signal that has not been seen during the past two years.
However, we ca see that the bullish momentum appears to be losing some traction as we get closer to that resistance level, raising the likelihood of a bearish break below the $1.1095 support level. As such, the next move is going to be dictated by whether we break through $1.1095 (bearish) or $1.1239 (bullish).
GBP/USD reversing lower after brief rebound
GBP/USD has been regaining some ground since the Monday low, with the price moving towards the $1.2851 resistance level.
The wider trend is clearly bearish, and the inability to break through that $1.2851 level signals a likely continuation of that recent weakness. As such, a bearish outlook remains in play as long as we do not break through the $1.2851 level.
AUD/USD rallies through trendline resistance
AUD/USD managed to regain some ground, with the price rising through the inside trendline that has held for much of 2020 thus far.
However, the wider bearish downtrend remains intact, highlighting the potential for a retracement of the sell-off from $0.6774. Thus far we have seen the 61.8% Fibonacci retracement level respected perfectly, highlighting the potential for a downward turn before long. Conversely, a break through $0.6774 would bring about a wider bullish picture.
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