EUR/USD, GBP/USD, and AUD/USD on the rise in early trade
EUR/USD, GBP/USD, and AUD/USD regain ground in early trade, yet questions remain as to whether Brexit-fueled gains are reliable enough.
EUR/USD pushing higher after latest retracement
The retracement into the 76.4% Fibonacci level seen last week provides us with a signal that the current move higher is likely to break through $1.2174 in a bid to continue the current uptrend. With that in mind it makes sense to look out for further gains, with a bullish outlook in place unless we see a break back below the $1.205 lows from last week.
GBP/USD rallies into Fibonacci resistance on Brexit hopes
GBP/USD has rallied back into the 76.4% Fibonacci support level, following on from a weekend of Brexit negotiations that saw both sides agree to further talks. Given the risk that the Sunday deadline ultimately drew a line under talks, there is at least a glimmer of hope that they could find an agreement ahead of the year-end deadline.
That hope has led us into Fibonacci resistance, with the reaction to this $1.3397 level (76.4%) likely to be key. A break through the $1.3478 swing high would bring about a move confident bullish outlook, yet there is still significant risk that we create another lower high and turn lower from here.
AUD/USD expected to maintain uptrend
AUD/USD has found resistance at the $0.7572 level following a turn higher in early trade today. With a clear uptrend in play here, it does look likely we will soon enough see another multi-year high for the pair.
As such, it makes sense to look for bullish positions, with a break through $0.7572 providing such a signal. Once such a breakout occurs, stops below the prior swing low (currently $0.752) look attractive as we seek further upside for this consistent performer.
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