EUR/USD, GBP/USD and AUD/USD likely to decline again
EUR/USD, GBP/USD and AUD/USD looks set for another bout of downside despite overnight gains.
EUR/USD moves back towards trendline resistance
EUR/USD has managed to marginally regain ground overnight, with the pair rising back towards trendline resistance. This short-term downtrend does still remain intact, albeit at a slower pace than that seen last Friday.
Thus, while a break through the $1.1018 mark would signal a potential bullish phase coming into play, the expectation is that we will see another leg lower from here.
GBP/USD breaking lower after overnight gains
The weakness seen yesterday appears to have set GBP/USD on a bearish phase, despite overnight gains. The shallow nature of upside seen overnight points towards a likely next leg lower which appears to be occurring this morning.
Watch for a break below $1.2899 as a bearish signal, with the stochastic also highlighting an imminent shift in that direction. Should that break occur, look at the 61.8% and 76.4% Fibonacci levels as potential downside targets ($1.2874 and $1.2856).
AUD/USD rally provides selling opportunity
AUD/USD managed to break lower after the recent consolidation, with the price ultimately hitting a one-month low after breaking below $0.6768. With the price moving higher this morning, there is a strong chance that this is a retracement before we see another leg lower.
Watch out for a recent trendline to potentially provide resistance, while Fibonacci resistance lies above that point. Ultimately a bearish outlook remains in play unless we see a break through the $0.6796 swing high established on Tuesday.
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