EUR/USD, GBP/USD and AUD/USD rebound, but will it last?
EUR/USD, GBP/USD, and AUD/USD regain ground after yesterday’s decline, but will this represent a brief or lasting recovery?
EUR/USD turns higher to maintain short-term recovery
EUR/USD has turned higher from the 76.4% Fibonacci level this morning, with the short-term uptrend looking likely to continue for now.
The caveat to that comes in the fact that we have seen the pair turn lower from the wider 61.8% resistance level at $1.1801, with a bearish trend seemingly in play from that perspective. With that in mind, while we could see another short-term rise coming into play here, there is a good chance that we will see the pair turn lower in a more meaningful manner before long. That wider bearish picture remains in play unless we see a break through the $1.1917 swing high. To the downside, a decline through the $1.1696 low would bring about a fresh sell signal.
GBP/USD turning higher after yesterday’s pullback
GBP/USD is turning higher in early trade today, with the recent recovery looking like it could take shape once more.
With the price having recently faltered at the $1.3007 swing high, the current move higher looks like a potential final shoulder in a bullish inverse head and shoulders formation. A break below the $1.2805 swing low would bring a more bearish picture into play, while a rise through the $1.3007 level would spark a more bullish view.
AUD/USD rally could falter given recent double top
AUD/USD has started to regain ground following an intra-day double top formation yesterday.
While we are currently seeing the price regain some of that lost ground, the question here is whether we are going to see the recent recovery take hold again. Given the wider bearish breakdown in September, there is a good chance that this current move higher will falter before long to bring about another breakdown. With that in mind, a bearish outlook is in play unless we break through yesterday’s peak of $0.7209.
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