EUR/USD, GBP/USD and AUD/USD expected to start losing traction after recent bounce
EUR/USD, GBP/USD and AUD/USD upside under question, with wider bearish trend expected to come back into play before long.
EUR/USD turning lower from moving average resistance
EUR/USD has started the week on a relatively downbeat tone, with the pair seeking to continue the bearish trajectory playing out since Thursday. The wider bearish trend does bring expectations of a deterioration despite the latest period of upside.
However, that rebound has managed to see the price push through the early-October peak of $1.00, rising through the wider 76.4% Fibonacci level in the process. However, we would need to see a push through $1.0198 to signal a potential end to this downtrend that has dominated the year thus far.
With the price starting to weaken from the 100-day simple moving average (SMA), there is a chance we are going to see the pair turn lower from here. As such, watch for a potential downside, with a break through $1.0198 required to bring a more positive outlook.
GBP/USD approaches key resistance level
GBP/USD has similarly been on the front foot over the course of the past month, with the price rising into the $1.16 level for the first time since mid-September.
The wider bearish trend does signal the potential for a bearish turn before long, although we are yet to see any particular signal that such a downward move has started.
To the upside, it is worthwhile noting the existence of the trendline, 100-SMA, and 76.4% Fibonacci resistance. With that in mind, a potential downward turn could be impending as the downtrend kicks in once again.
AUD/USD reversing lower after recent rebound
AUD/USD has started to reverse lower after a period of gains that took the pair up towards the $0.6547 swing high.
The weakness of the Australian dollar over recent weeks appears to be coming back into play here, with the price already heading lower in early trade today.
As such, another leg lower looks likely here, with a rise through $0.6547 required to bring about expectations of a wider rebound.
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