EUR/USD, GBP/USD, and AUD/USD rebound into key resistance levels
EUR/USD, GBP/USD and AUD/USD gain ground, but will recent declines signal the potential for another move lower?
EUR/USD rallies back into inside trendline resistance
EUR/USD has been regaining ground overnight, with the pair rising back into an interesting trendline that could put downward pressure on the pair.
The recent decline back into the low of $1.1698 points towards a potential end to the recent uptrend, especially given this rally has taken us into a long-term descending trendline on the monthly timeframe. With the price having rallied into the confluence of an ascending trendline and Fibonacci resistance (61.8%), there is a risk that we could see the pair turn lower from here. As such, it makes sense to watch for a potential bearish reversal from here, with a break through $1.1909 required to bring about a fresh bullish outlook.
Until then, the reaction to this resistance zone will be key in signalling whether we are on the cusp of another leg lower.
GBP/USD rallies back towards key resistance level
GBP/USD has been on the rise overnight, with the pair moving towards the crucial $1.3107 resistance level.
Given the recent trend of lower highs, there is a good chance we will see the pair turn lower from here. That being said, the proximity to this swing high means we need to turn immediately or else risk negating the recent bearish signal. As the stochastic seeks to break back below the 80 threshold, a break below that point would signal a potential bearish sell signal given the success of previous such crosses.
AUD/USD rebounds back towards Fibonacci resistance
AUD/USD has managed to break back into the 76.4% Fibonacci resistance level this morning, with the pair attempting to break higher from here.
We are ultimately looking for a rise through the $0.7227 level to negate the recent break below $0.7121 that raised questions about the directional bias. As such, watch for a breakdown from this Fibonacci level, or else a rise through $0.7227 to signal the directional bias for the day.
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