EUR/USD, GBP/USD and AUD/USD all at risk of turning lower
Bullish momentum is waning in EUR/USD, GBP/USD and AUD/USD, with a rebounding US dollar threatening the broader pro-risk atmosphere.
EUR/USD downtrend back on?
It looks increasingly like the downward move in EUR/USD has resumed, as the price retreats once again from $1.118. This double-top is a bearish formation, and so far it looks like the price is likely to continue moving lower.
Intraday, the price has managed to hold around $1.117, but if bearish momentum resumes and pushes the price below this level, then it is possible that we will see a move back to $1.0875, the lows of late September. A rally back above $1.114 would be needed to suggest a more bullish view is emerging.
GBP/USD edging lower
The GBP/USD price attempted to rally off short-term trendline support yesterday, but the attempt failed and since then we have seen it drop below $1.289.
A push below $1.28 would confirm a more bearish view in the short term, although it looks like even a drop towards $1.26 would still leave the nascent uptrend from the October low in place.
AUD/USD searches for bullish catalyst
AUD/USD has enjoyed a strong rally from the September low and possible double-bottom around $0.67.
But it needs to maintain upward momentum to avoid the possible resumption of the much longer-term downtrend. At present, dip buyers continue to maintain forward momentum, as we have seen over the past two days with dips towards $0.688. A move back below $0.684 would be a first sign of some weakness, while those of a bearish view will watch for a bearish crossover on the daily moving average convergence/divergence (MACD).
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