EUR/USD, GBP/USD and AUD/USD rebound may not last long
EUR/USD, GBP/USD, and AUD/USD start to regain ground after recent losses, but bears look likely to return before long.
EUR/USD turning higher but gains could be brief
EUR/USD is moving higher this morning, despite seeing what looked to be the latest move lower for a pair which looks likely to fall further.
The wider reversal signal seen in August and September provided a bearish outlook despite recent gains. With that in mind, the decline below $1.1733 highlighted the end of the recent upward retracement mode, with further downside likely from here. Despite the inability to break below the $1.1689 lows on Friday, there is a good chance we will soon turn lower. As such, a bearish outlook holds unless we see a rise through the $1.1771 swing high.
GBP/USD on the rise from key support
GBP/USD has turned higher from yet another deep retracement. However, on this occasion the retracement was total, with the price coming back and respecting the $1.2863 support level established on Wednesday.
The recent trend of narrowing gaps between lows does point towards a potential top coming into play before long. Therefore, while we are likely to see further short-term upside, there is a risk that this could fall short of the $1.3064-$1.3082 resistance zone to turn lower.
AUD/USD turning higher, yet bears likely to dominate
AUD/USD has been consolidating this morning, with Chinese gross domestic profit (GDP) disappointment doing little to boost the Australian dollar.
The recent breakdown below the $0.7096 support level points towards further downside to come, with short-term upside likely to be a retracement and precursor to another move lower. With that in mind, while we could see the pair gain some ground over the short term, a bearish outlook remains in play until recent swing high resistance is broken around $0.7191 and $0.7243.
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