EUR/USD, GBP/USD and AUD/USD losing momentum after recent rally
EUR/USD, GBP/USD and AUD/USD rally starts to slow, but will we turn lower or push higher once again?
EUR/USD struggling at the SMA resistance
EUR/USD has seen the upwards trajectory stutter somewhat this week, with the decline seen across equity markets similarly providing an upward move for the dollar. The recent rebound seen for this pair has been borne out-of-risk on sentiment in the wake of the declining US consumer price index (CPI) figure. However, this week has brought a timely reminder that not all is well elsewhere, with UK inflation now up to 11.1%.
The gains seen for EUR/USD do appear to have dried up to some extent, with price struggling to break through the 200-day simple moving average (SMA). Given the size of the rebound seen last week, there is a chance we see a pullback come into play here. A break down through $1.0271 would provide the intraday signal that a pullback could be coming into play. To the upside, a push through the recent high of $1.0481 would bring a bullish continuation signal.
GBP/USD attempts to push higher after budget and retail sales
GBP/USD appears to be doing a little better here, with a wealth of data out of the UK bringing upside for the pound. Between higher inflation, improved retail sales, and consumer confidence, the Bank of England (BoE) should continue their steep pathway to higher rates.
The recent rise through trendline resistance subsequently took us through the 76.4% Fibonacci level. With that in mind, we could see further gains come into fruition, with a move back below the $1.171 required to bring a move negative short-term picture into view.
AUD/USD comes under pressure after rally into resistance
AUD/USD has started to lose traction after a rally into the confluence of a descending trendline and 61.8% Fibonacci resistance. The recent rise through $0.6547 resistance signalled a potential upward push for the pair, with the wider downtrend coming into play. As such, the current rise looks to represent a retracement of the selloff from the $0.7136 swing-high.
Quite whether this rebound ends here remains to be seen, with a push through this confluence of resistance required to signal a potential move into 76.4% Fibonacci resistance and the 200-SMA level. In either scenario, these short-term gains appear to be setting us up for another downturn before long. A rise through $0.7136 would be required to negate that outlook.
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