EUR/USD, GBP/USD, and AUD/USD start to roll over from resistance

EUR/USD, GBP/USD, and AUD/USD start to roll over, with recent gains coming into question once again.

Transcript

EUR/USD starts to turn lower from key resistance

EUR/USD is turning lower after a rally into the $1.2177 resistance level overnight. That level corresponds to what would form a left shoulder if we ultimately break back below the potential head and shoulders neckline of $1.2059.

However, we are still some way from that neckline breakdown. For now, the fact that we are finding resistance on this level does provide the potential for a bearish turn here, with a rally up through $1.2177 required to continue this recent bullish push. Until then, it seems likely we will see the bears start to gain momentum again as we look to close out a historic week.

GBP/USD falls back in dramatic fashion

GBP/USD has seen sharp losses this morning, with the pair falling back towards the 76.4% Fibonacci support level. With a wider uptrend in play, the question is whether this is going to be a potential retracement of the short-term rally from $1.3623 or wider move from $1.352.

That will be answered relatively swiftly, with the price either respecting this 76.4% Fibonacci level to push upwards, or break below the $1.3623 level to bring the wider pullback into play. In either case, this current pullback looks likely to be a short-term move within a wider bullish trend.

AUD/USD rolls over from Fibonacci resistance

AUD/USD has started to weaken from the 76.4% Fibonacci resistance level, with the pair looking at risk of building on the already bearish short-term trend of lower highs.

A break up through the $0.7805 resistance level would negate that short-term trend and see a continuation of the wider bullish trend. However, with the latest move lower in motion, it looks likely we will see further downside over the short term. To the downside, the $0.766 region provides a clear support zone to watch.

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