EUR/USD, GBP/USD, and AUD/USD hit long-term highs as dollar suffers
Dollar has started 2021 under pressure, with EUR/USD, GBP/USD, and AUD/USD breaking into long-term highs.
EUR/USD on the rise after recent retracement
EUR/USD is on the rise in early trade today, with the recent pullback taking us into the confluence of Fibonacci and standard deviation channel support.
The wider uptrend remains intact until we break from this current trend of higher lows. As such, a bullish outlook holds unless we break below the $1.2152 swing low.
GBP/USD hits 32-month high after Brexit deal
GBP/USD has been gaining ground since the Brexit deal was agreed, with the ability to avoid a no-deal scenario helping to ease the fear surrounding the pound. The four-hour chart highlights how the pair has rallied towards the top end of a standard deviation channel over the course of this latest rise.
With that in mind, there is a chance we could retrace before long, where a break through trendline resistance could signal a less choppy road ahead. To the downside, any short-term downside would likely form a retracement of the rally from $1.3429.
AUD/USD pauses after latest surge
AUD/USD has similarly been on the rise over the final week of 2020, with the pair looking to kick-start the new year in a similarly positive fashion.
That being said, we have seen some consolidation take hold in early trade, with the ability to break up through $0.7742 likely to prove key in determining whether we see a continuation or pullback. To the downside, a break below the $0.7681 level would point towards a retracement of the wider $0.7557-$0.7742 rally taking shape.
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