EUR/GBP and AUD/USD higher, while USD/CAD rally falters
Both EUR/GBP and AUD/USD have moved higher, the latter forming a possible short-term low, while the strong gains in USD/CAD have been temporarily checked.
EUR/GBP moves back above 50-day SMA
EUR/GBP's rally from the lows of last August continues, and has carried it back above the 50-day simple moving average (SMA).
This now clears the way for another attempt to reach the highs of July and August around £0.865, though now this level lies beyond the 100-day SMA. If the price fails to break the 100-day SMA then the bearish view will be given further reinforcement.
Above £0.865 the price will head towards the mostly-flatlining 200-day SMA.
AUD/USD forming short-term bottom?
A possible short-term low continues to form here, with AUD/USD rallying back above $0.64 once again.
Having dropped to a near ten-month low the bearish view remains firmly in place. Bears might actually welcome a rebound in the short-term to create a fresh lower high, which might potentially emerge near the declining 50-day SMA.
A reversal and slump back below $0.64 would amplify the short-term negative view, and bring the $0.625 level into play, along with the lows of October 2022 around $0.62.
USD/CAD rally stalls
After the impressive rally from early July, USD/CAD may finally have hit some selling pressure.
It is likely too soon to suggest a near-term top has formed, but some consolidation might not be surprising, with the 200-day SMA an initial target for some short-term weakness.
Continued price action above C$1.34 will indicate that the buyers remain in charge overall.
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