EUR/USD, GBP/USD and AUD/USD rebound, but will it last?
EUR/ USD, GBP/USD, and AUD/USD regain some lost ground, yet it is the euro which looks like the outperformer here.
EUR/USD rallies into SMA resistance
EUR/USD has managed to break out from the short-term downtrend, with the pair ultimately failing to build on the tentative break through a long-term trend support.
With the price having rallied into the 200-day simple moving average (SMA), there is a good chance that we could see the market drift lower for the short term given the prior respect of this indicator. However, whether that pullback occurs or not, things are looking much more optimistic for the trajectory of this pair, with further upside likely around the corner.
GBP/USD gaining ground, yet further downside seems likely
GBP/USD has started to gain ground over recent days, with the pair moving towards yesterdays high of $1.2188.
However, these gains look like a precursor to further downside, with a break above $1.225 required to negate that bearish outlook. As such, further gains could provide us with a shorting opportunity around $1.22-$1.221.
AUD/USD on the rise, yet resistance remains ahead
AUD/USD has regained some ground in the wake of the Reserve Bank of Australia (RBA) decision overnight. They chose to keep rates steady as expected, yet the tone allowed expectations of a September cut to creep higher.
In terms of the chart, the upside we have seen this morning takes place below a crucial resistance zone, with the $0.6827-$0.6832 zone marking the historical lows that formed a wider descending triangle. The break below that level was notable, and thus it makes sense that any bullish short-term picture would require a break through that resistance zone. Until then, the downtrend still remains intact. Utilising the Bollinger band, we can see that the middle band has been reached, which has provided the bearish reversal point on the past two occasions.
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