EUR/USD, GBP/USD and AUD/USD decline after yesterday’s sharp ascent
EUR/USD, GBP/USD and AUD/USD begin to retrace after the sharp upside seen yesterday.
EUR/USD breaks through resistance to bring 18-month high
EUR/USD has managed to surge through the $1.1496 resistance level established back in March, with the price subsequently reaching the highest level since January 2019. This is just the latest leg higher in a long-lasting uptrend seen throughout the past three months.
With that in mind, further upside looks likely before long, as we look for this trend to continue. That bullish view holds unless we see the price break below the $1.137 support level. With the price starting to lose momentum this morning, there is a good chance we are going to see a retracement phase come into play before long. However, such a move would be deemed as a buying opportunity as long as we do not break into a new lower low.
GBP/USD reverses lower after recent gains
GBP/USD has started to reverse lower, following a period of sharp gains that took the pair through $1.2669 resistance. With the stochastic breaking below the 80 threshold, momentum is clearly bearish for the time being.
As such, further downside does look a distinct possibility over the short term. However, the uptrend seen throughout the past month is expected to come back into play before long, with the current pullback expected to provide a retracement before we move higher once more. As such, while we are likely to see further downside, it is worthwhile watching for Fibonacci support levels to potentially come into play.
AUD/USD surges into 14-month high
AUD/USD has managed to break through the crucial $0.7082 resistance level, bringing the pair into the highest level since April 2019. That bullish momentum is starting to wane this morning, with the pair turning sharply lower.
However, this is likely to simply be a reflection of the fact that we saw such a sharp move higher previously. As such, this pullback is expected to bring a buying opportunity, with a bullish outlook remaining in play until we see a break below the $0.6963. While we may not retrace into a deep Fibonacci level, support is likely to come around the previous resistance points of $0.7082 and $0.7064.
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