EUR/USD, GBP/USD and AUD/USD rally into key resistance
EUR/USD, GBP/USD and AUD/USD gain ground, yet key hurdles remain if this dollar sell-off is to continue.
EUR/USD surge brings two-month high
EUR/USD managed to break through the crucial $1.0991-$1.1018 resistance zone this week, with the European Inion (EU) funding deal and easing demand for the haven dollar helped drive the pair higher.
We are seeing some weakness coming into play this current hour, yet the price remains within a short-term uptrend unless we see a break below the $1.1066 swing low established last night. Until then, the bullish trend remains in play with further upside a possibility.
GBP/USD rallies back into 50% retracement level
GBP/USD has also seen sharp gains over the course of Thursday, with the pair rallying back into the 50% retracement and 200-day simple moving average (SMA).
This resistance zone will be key in determining where we go from here, with a break through $1.2362 pointing towards a rally into a deeper Fibonacci retracement level of $1.2428 and even $1.251. For today, sentiment will be guided by the ability to break through the key $1.2362 resistance level.
AUD/USD rallies back into key resistance level
AUD/USD turned lower from the $0.6685 level on Wednesday, with the pair declining into the 61.8% Fibonacci retracement level at $0.6572.
However, the uptrend has kicked in once more, bringing the pair back into this historical resistance level. A break through this key hurdle sets us up for further upside, bringing expectations of further upside. To the downside, we would need to see a drop below $0.6506 to raise questions over the longevity of this uptrend.
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