EUR/USD, GBP/USD and AUD/USD all moving higher
Risk appetite has revived, with AUD/USD in particular on the rise as investor confidence regarding a global recovery increases.
EUR/USD poised to break out
EUR/USD has managed to reverse some of the bearish impression created in mid-April with lower highs and lower lows.
A rebound from Friday’s low remains in place, and if we see a breakout from this wedge formation of the past day then a fresh push towards $1.086 and higher could be in play. Alternatively, a drop below $1.08 suggests a more bearish view has returned, and now $1.073 and Friday’s low comes into view.
GBP/USD pushes higher
GBP/USD has also steadily rallied, although in this case the move higher has been in play for a week now. The price has formed higher highs and higher lows over the last few sessions, and the weakness from yesterday’s high at $1.245 appears to be turning into a fresh push higher, having held $1.24.
If this is another higher low then the price will challenge $1.245 before moving on to test the $1.252 area that marked resistance in mid-April. Beyond this, $1.265 comes into view. For the time being, the bulls are in charge; a reversal below $1.24 would challenge this, and possibly bring $1.23 and $1.225 into view.
AUD/USD rally goes on
AUD/USD continues to benefit from the ongoing recovery in risk appetite, along with equities. Indeed, since mid-March, the charts look quite similar, with a continuing rebound in risk appetite.
Yesterday saw the price push above $0.644, the high from mid-April, and this positive development has been followed up by further gains. Dips such as those over the past week have formed higher lows, with buying pressure remaining strong. So far, there is no sign of a longer-term move lower, with the next target being the $0.665 level last seen in early March.
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