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EUR/USD, GBP/USD and AUD/USD show potential for further upside

EUR/USD, GBP/USD and AUD/USD show potential for another leg higher as the dollar eases off ahead of next week’s FOMC meeting.

Transcript

EUR/USD surges after consolidation phase

EUR/USD finally broke higher from its consolidation phase, with price remaining within a trend of higher highs. That recent failure to break below $1.1572 was telling, with the 76.4% Fibonacci level ultimately providing a good buying opportunity.

We are looking at a clear bullish short-term trend set against a bearish longer-term picture. With that in mind, further upside should be expected until we see the price break from this trend of higher lows (below $1.1582).

GBP/USD rebounds but risks another move lower here

GBP/USD has been largely consolidating this week, with price drifting lower in the wake of the gains seen in the first three-weeks of October.

There is a good chance that this current phase is a precursor to us heading higher, but bullish positions are favoured above $1.3829. Until then, there is a risk we see this pair fade to continue the recent retracement phase.

AUD/USD continues to move higher as pair hits three-month high

AUD/USD has been on a consistent uptrend over the course of October thus far, with the price rising back into levels not seen since July.

That trend looks likely to persist from here, with a break back below the $0.7453 level required to negate this bullish trend.


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