EUR/USD, GBP/USD and AUD/USD regain ground after recent retracement
EUR/USD, GBP/USD and AUD/USD turn higher after a short-term decline into Fibonacci support.
EUR/USD starts to regain ground after latest retracement
EUR/USD has started to turn higher after a deep retracement on Friday and Monday.
That decline took us towards the 76.4% level, with the pair subsequently gaining ground. The rise through $1.2134 does highlight the bullish picture coming back into play, with further upside expected as a result. A break back below the $1.204 level would be required to bring a more neutral or bearish short-term view.
GBP/USD volatility heightened on no-deal fears
GBP/USD has seen significant volatility over the course of the past week, with price recovering after an initial sharp decline on Monday. However, that drop below $1.3288 does highlight the potential that this current move is a retracement and pre-cursor to further weakness.
With Boris Johnson heading to Brussels in a bid to rescue Brexit talks, we are looking at a market that is likely to be driven by headlines in the near-term. As such, while we expect some element of unpredictability, this pair does appear to be at risk of another turn lower unless price breaks through the $1.3540 resistance level.
AUD/USD heads up into resistance after latest retracement
AUD/USD is on the rise once again, following on from a deep pullback into the 61.8% to 76.4% Fibonacci retracement zone.
The wider uptrend highlights significant optimism for the pair, which has swiftly come back into play. With that in mind, it makes sense to expect further upside from here, with a break through the $0.745 resistance level likely to be key as we seek to push onwards. A break below the $0.7339 level is needed to negate that view.
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