EUR/USD, GBP/USD, and AUD/USD rise unlikely to last
Dollar gains take a breather, yet this greenback strength looks likely to further hurt EUR/USD, GBP/USD and AUD/USD.
EUR/USD turning lower to build on head and shoulders break
EUR/USD managed to break through the $1.2059 head and shoulders neckline yesterday, bringing a fresh bearish signal for the pair. While we saw some upside overnight, there is a strong chance we are on the cusp of another leg lower here.
While a break up through $1.2087 would weaken the bearish story somewhat, we would need to see the $1.2156 swing high broken to negate the current bearish outlook for the pair. Until then, further downside looks likely with a decline through $1.2011 bringing further confidence that this is not a fake-out scenario.
GBP/USD breakdown brings potential reversal signal
GBP/USD fell through trendline support yesterday, bringing price back into the $1.3609 swing low. That raises questions over whether this trend is going to continue apace or start to reverse. With the pair regaining ground this morning, there is still a chance we will continue to move higher here.
However, it makes sense to watch for a break through $1.371 and even $1.3758 to negate this latest breakdown. Nevertheless, until that upside break occurs, there is a chance we are priming for another turn lower here. As such, watch out for a potential bearish move here, with a break below $1.3609 solidifying this bearish outlook.
AUD/USD rally provides potential selling opportunity
AUD/USD is ahead of the curve on the selling front, with the pair already having hit a fresh 2021 low this week.
While price is on the rise this morning, we have trendline resistance up ahead that could limit these gains. A break up through the $0.7704 swing high negates this bearish outlook, yet it makes sense to look out for further downside until that break occurs.
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