CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD, and AUD/USD rise unlikely to last

Dollar gains take a breather, yet this greenback strength looks likely to further hurt EUR/USD, GBP/USD and AUD/USD.

EUR/USD turning lower to build on head and shoulders break

EUR/USD managed to break through the $1.2059 head and shoulders neckline yesterday, bringing a fresh bearish signal for the pair. While we saw some upside overnight, there is a strong chance we are on the cusp of another leg lower here.

While a break up through $1.2087 would weaken the bearish story somewhat, we would need to see the $1.2156 swing high broken to negate the current bearish outlook for the pair. Until then, further downside looks likely with a decline through $1.2011 bringing further confidence that this is not a fake-out scenario.

GBP/USD breakdown brings potential reversal signal

GBP/USD fell through trendline support yesterday, bringing price back into the $1.3609 swing low. That raises questions over whether this trend is going to continue apace or start to reverse. With the pair regaining ground this morning, there is still a chance we will continue to move higher here.

However, it makes sense to watch for a break through $1.371 and even $1.3758 to negate this latest breakdown. Nevertheless, until that upside break occurs, there is a chance we are priming for another turn lower here. As such, watch out for a potential bearish move here, with a break below $1.3609 solidifying this bearish outlook.

AUD/USD rally provides potential selling opportunity

AUD/USD is ahead of the curve on the selling front, with the pair already having hit a fresh 2021 low this week.

While price is on the rise this morning, we have trendline resistance up ahead that could limit these gains. A break up through the $0.7704 swing high negates this bearish outlook, yet it makes sense to look out for further downside until that break occurs.

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