EUR/USD, GBP/USD and AUD/USD looking likely to gain ground
EUR/USD, GBP/USD and AUD/USD look set for further upside following short-term pullbacks.
EUR/USD rallies back into Fibonacci resistance
EUR/USD has seen a relatively volatile 24 hours, with initial losses reversing into another spike higher for the pair. With previous weakness coming around the 76.4% Fibonacci retracement level of $1.1055, the question of whether we can break through this level or not will be key today.
Ultimately, we would need to see a break through $1.1111 to bring about a more bullish outlook, and until then it makes sense to look for potential weakness here. That being said, a break below $1.099 would provide us with a more convincing bearish sell signal.
GBP/USD easing back after another sharp rally
GBP/USD is in consolidation mode this morning, as the pair settles off the back of yet another sharp rally. With the Brexit talks reaching a crescendo, volatility lies ahead. However, with UK Prime Minister Boris Johnson clearly in favour of a Brexit deal, there is likely to be further upside for the pound despite current talks running out of time.
The worry for markets is the possibility of a no-deal Brexit, and Johnson's recent action highlight a willingness to shift his position to bring about an orderly exit. As such, further upside seems likely before long, with the current pullback looking like a retracement. A break below the $1.2516 level would be required to bring about a more bearish picture.
AUD/USD pulls back into Fibonacci support
AUD/USD has been weakening from the 61.8% Fibonacci resistance level of $0.6809 this week. However, with short-term higher highs in play, the pullback into 76.4% support at $0.6734 brings about an interesting crossroads.
A rally from here could bring a deeper retracement, yet a break below $0.671 would signal that wider bearish picture coming back into play from here.
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