EUR/USD, GBP/USD and AUD/USD consolidate as trends take a breather
EUR/ USD, GBP/USD and AUD/USD take a breather, as we see consolidation ahead of the next move.
EUR/USD turning higher in consolidation zone
EUR/USD has been rangebound for much of the past week, with the price largely seeing $1.1167 as the bullish turning point.
We are back at that level this morning, and with the price posting a cluster of indecision candles, it looks likely that we will start to gain ground once again. To the upside, the 200-day simple moving average (SMA) has been capping much up the gains, yet with the price action going beyond that point on Monday and Tuesday, we can instead utilise trendline resistance as an area which would be more relevant. As such, a short-term bullish view is in play for a move into trendline resistance, where a break below $1.1167 would bring a more bearish short-term picture.
GBP/USD consolidating before likely break lower
GBP/USD has been within a clear downtrend over the course of year, with the price hitting the lowest level since early-2017 earlier this week.
We have recently seen an inside trendline provide resistance to any gains, and we are currently consolidating off the back of that move lower. Given the context of that wider move, further downside seems likely, and a bearish turn for the stochastic indicates a growing likeliness that we will see another sell-off before long. A rally through $1.2106 would provide us with another move into trendline resistance. However, until that happens it looks likely we will see the bears come back into play before long.
AUD/USD turning lower following US-China trade bounce
AUD/USD rebounded on the news that the US is delaying much of the 10% tariffs that were planned for 1 September.
However, we are now seeing the pair move lower having failed to break through the prior high from last week. Given the current pattern of higher lows and lower highs, a break below $0.6745 would provide us with bearish confirmation. However, until that happens, we are simply expecting to see short-term losses as momentum rolls over. To the upside, we would need to break through $0.6833 to bring about a more reliable bullish signal.
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