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Counter-trend dollar weakness unlikely to persist

Short-term upside for the likes of EUR/USD, GBP/USD and AUD/USD has provided a counter-trend move, but the sellers are likely to return.

EUR/USD turning higher from support zone

EUR/USD managed to decline into within touching distance of the $1.1111 support zone in play over the past month.

However, it looks like the pair is now setting itself up for a rebound, with the price breaking higher from a consolidation phase. An hourly close above $1.1143 would raise the likeliness of a rebound from here, with another upward retracement coming into play.

GBP/USD moving higher within recent downtrend

GBP/USD is also seeing some upside come into play this morning, coming amid a remarkably consistent sell-off in the pair. This is likely to be a short-term phenomenon, yet it will come down to whether we see a break through the $1.2641 swing high. Should that occur, a rebound into a wider retracement of the $1.2748-$1.2580 sell-off would come into play.

However, until that break occurs, there is a good chance we are simply retracing the shorter-term $1.2641-$1.2580 move. As such, another leg lower looks likely before long, with a break above that first swing high required to point towards a wider retracement coming into play.

AUD/USD rallies into resistance zone

AUD/USD is moving higher after yesterday’s sharp decline that took the pair into a new low for the week. The pair is currently moving higher once more, yet the sellers expected to return before long.

A rise through the $0.6936-$0.6938 resistance zone would bring about a bullish picture. However, until that happens, we look likely to falter around that area once again today.

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