EUR/USD, GBP/USD, and AUD/USD finding support after recent drops
EUR/USD, GBP/USD and AUD/USD start to find support as weakening haven demand lessens dollar strength.
EUR/USD on the rise as consolidation continues
EUR/USD is on the rise this morning, as the pair starts to reverse some of the sharp declines seen yesterday.
There is a chance we are creating a bearish reversal pattern here, with a break below the $1.1195-$1.1212 support bringing about a bearish head and shoulders formation. For now we are on the rise, yet the declines below $1.1241 seen on Friday point towards this current rally being a potential precursor to a bearish turn. Conversely, a break through yesterday’s peak of $1.1353 would bring about a more bullish signal.
GBP/USD falls back into Fibonacci support
GBP/USD has been on the slide over the past 24 hours, with the pair declining back into the 61.8% Fibonacci support level at $1.2543.
The recent drop below $1.2501 highlights a potential bearish reversal phase coming into play, yet we would need to see the $1.2543 level overcome first. With the price having rallied through the $1.2653 swing high, there is a chance we could move higher from here. Therefore, the move out of this recent 61.8% decline is going to be important as we seek to see the ongoing direction for this market.
AUD/USD turning higher after recent declines
AUD/USD is on the rise this morning, with the pair attempting to build on the recent reversal from 50% support at $0.6785.
Much like the GBP/USD move, Monday's break through the $0.6912 swing high points towards a potential bullish resurgence coming into play. The pair appears to be looking to build on that move, with price turning higher following the declines seen yesterday. With that in mind, this pair looks likely to continue pushing higher as long as wider market sentiment remains bullish. As such, a bullish outlook is in play here, with a break through the $0.6976 looking likely from here. A break back below the $0.6833 level would bring about a more bearish outlook.
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