EUR/USD bounces back
Here again, Friday’s sharp drop is making itself felt, although EUR/USD has bounced commendably from the 200-hour simple moving average at $1.1290.
Dip buyers may wish to step in for another attempt to move above $1.14, but with the daily relative strength index beginning to move lower this trend may have run its course for now.
A move through $1.1250 would likely signal that the sellers are back in charge, as the lows of Thursday and Friday are breached.
AUD/USD looks set to bounce
For four sessions now AUD/USD has tried to break through the $0.72 level, and for four sessions it has failed to do so. For now however, the pair has come to rest just above $0.7160, so we may see a short bounce here.
That said, any move through $0.7140 would head towards $0.71 itself. Bulls will need to breach and close above the 50-day SMA at $0.7245 to put the upward move back on track.
The sharp rally on Friday in this pair caught the dollar shorts napping, and if nothing else, confirms that this trend is not dead, but just resting. Now the buyers must push the pair back towards C$1.3350, for a real breakout towards fresh highs.