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EUR/USD and GBP/USD are looking somewhat unconvincing, with Italian and Brexit fears driving slightly mixed market messages. Meanwhile, AUD/USD looks set to fall amid a recent rising wedge pattern.
EUR/USD has been pushing higher off the back of a two-week period of losses.
We are now seemingly in a period of consolidation, where a break through support ($1.1544) or resistance ($1.1609) would signal where we go from here. A break to the downside would look like a potential retracement before we push higher once more. Meanwhile, a rally through resistance may point towards a move into the $1.17 region.
GBP/USD has failed to rally through the $1.3258 swing high, raising doubts about the longevity of this rebound.
The direction for this pair will be determined by a break through $1.3258 or $1.3098. A drop below that $1.3098 low points towards a potential wider breakdown, with Fibonacci support the first point of call. To the upside, a rally through $1.3258 would signal a continuation of the wider bullish trend in place since the September low.
AUD/USD has been gaining ground over the past week, with a rising wedge coming into play.
That is a bearish pattern, pointing towards a possible breakdown before long. Given the wider downtrend in play, such a breakdown would be consistent with the primary long-term trend. Thus, watch for a break below the first swing low to signal an impending sell-off. That level is currently $0.7111. Until that happens, we could continue to drift higher.
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