EUR/USD, GBP/USD and AUD/USD recover after Monday’s losses
The selling has eased off in several FX pairs, as risk appetite stages a tentative recovery.
A small recovery here with EUR/USD has seen the price bounce from $1.17.
Buyers will be looking for a continued recovery that moves back above the 50-day simple moving average (SMA) at $1.1793, while sellers will view this as a brief respite before a fresh move back towards $1.167.
GBP/USD has halted its losses for now at $1.365, although after three days of steep losses this is only a minor bounce.
The day could see a resumption of the move towards $1.36, and then below this the bearish view would be reinforced with the creation of a new lower low.
AUD/USD rallied off the lows yesterday, stabilising after more than two weeks of declines, but this small bounce has yet to suggest a change in trend is near.
Further declines target $0.72 and then the August low at $0.7106. Buyers will need to see further gains above $0.73 to provide evidence a turn is at hand.
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