EUR/USD, GBP/USD and AUD/USD start to rise after sharp declines
EUR/USD, GBP/USD and AUD/USD starting to move higher after recent declines, yet bearish picture looks set to return.
EUR/USD declines through Fibonacci support level
EUR/USD has continued the short term declines, with the price falling below the 76.4% Fibonacci support level.
That points towards a potential breakdown in the wider bullish trend that has been in play since the May lows. A break below the $1.1181 swing low is key to that bullish trend being unraveled. For now, we can see the price consolidating in a move that could be the beginning of a retracement phase. However, such upside will likely be another retracement unless the price rises through $1.1312. Until then, further downside looks likely before long.
GBP/USD declines below key support level
GBP/USD finally managed to negate the bullish connotations that came with a rally through $1.2763.
The recent break below $1.2506 signals a wider bearish picture coming back into play once more, with the current rebound likely to fall short. As such, short-term gains looks like a selling opportunity, with a bullish picture only coming should we see a rally through $1.2589.
AUD/USD rebounding from key support
AUD/USD provided a bout of sharp declines throughout Friday, with the pair turning lower from trendline resistance.
We have seen a decline into the crucial $0.6956 swing low, which, if broken, would signal a bearish picture for the short-term. However, given the fact that we have essentially formed a flat-lining low at that $0.6956 low, it looks likely that we are currently forming a retracement before we see a turn lower. This current rally looks like a selling opportunity, with a rally through $0.7048 required to bring about a more bullish outlook.
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