EUR/USD, GBP/USD and AUD/USD reverse lower after recent gains
EUR/USD, GBP/USD and AUD/USD start to reverse lower, as they given back the gains of last week.
EUR/USD easing back after recent uptrend
EUR/USD has started to ease lower after a week of upside for the pair. The fall back into the $1.1114 level points towards the possibility of another bearish move coming into play.
A break below that level would provide greater confidence of that bearish outlook, pointing towards further downside to come. As such, watch for a break below $1.1114 to signal a continuation of the bearish price action we have seen over the start of this week.
GBP/USD breaks lower from rising wedge formation
GBP/USD has sold off in response to yesterday's failed parliamentary timetable vote, with the markets now faced with an extension or general election. Nevertheless, it does feel that the risk of a no-deal Brexit has been significantly diminished for the time being.
That could reverse in the event that the Brexit Party become part of a coalition after an election. Therefore, the risk of an election does bring the possibility that this deal will not pass. With that in mind, markets are likely to be hesitant currently, as we await the extension details from the EU. With that uncertainty continuing to loom overhead, further downside does look a distinct possibility as we continued to move lower from a rising wedge breakdown. A break through the $1.3013 peak would negate this bearish short-term outlook.
AUD/USD drifting lower after recent upside
AUD/USD has been giving back some of the gains seen through last week, with the short-term picture highlighting the creation of lower highs and lower lows.
That looks likely to continue for the time being, and thus a bearish outlook holds unless we see a break through the most recent swing high of $0.6862.
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