EUR/USD, GBP/USD and AUD/USD gains could be fleeting
EUR/USD, GBP/USD and AUD/USD gain ground amid dollar decline, yet bears likely to return before long.
EUR/USD starts to weaken after recent rally
EUR/USD has been regaining ground for much of the week, with the price starting to weaken after hitting the 76.4% Fibonacci retracement level at $1.1284.
The downtrend in play over the course of the last three weeks points towards a potential move lower from here, where a break below $1.1245 brings about a bearish confirmation.
GBP/USD regains ground, yet bearish wider picture remains
GBP/USD has managed to break through the $1.254 swing high this week, bringing about a greater chance of a bullish phase coming into play for this pair.
The wider bearish picture remains in play despite the possibility of a short-term bullish picture playing out. For the short term, a rise through $1.2571 would provide greater confidence over the possibility of a bullish phase. However, that would be deemed as a retracement of the $1.2783-$1.244, before the bearish picture returns. Alternatively, a decline below $1.2509 would be required to see the bearish picture emerge once again.
AUD/USD gaining ground amid dollar weakness
AUD/USD has been making up ground off the back of a sharp decline at the beginning of the week.
Coming off the back of a rally into trendline resistance, we look to be retracing that wider $0.7048-$0.691 decline. Look for whether we can start reversing lower from this deep resistance zone, where the 76.4% Fibonacci resistance ($0.7015) provides a key level to watch out for. While we could see further upside come into play over the short term, there is a wider bearish picture that looks likely to resurface before long.
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