EUR/USD, GBP/USD and AUD/USD surge as dollar declines

EUR/USD, GBP/USD, and AUD/USD push upwards as the dollar ultimately suffers in the wake of Jerome Powell’s Jackson Hold appearance yesterday.

EUR/USD turning higher after Powell volatility

EUR/USD seems to have finally broken from the consolidation phase that has dominated the past week, with the pair ultimately heading higher after initial volatility yesterday.

Nevertheless, the prospect of longer-term easing from the Federal Reserve (Fed) has ultimately provided a boost for the pair, with the price looking likely to break through $1.1965 and follow up on the mid-August breakout. Given the 76.4% Fibonacci retracement since, there is a strong chance we will see an upward move from here. As such, a bullish outlook is in play, with a break back below the $1.1762 level required to negate that view.

GBP/USD hits fresh eight-month high

GBP/USD has tentatively broken through the $1.3284 level this morning, hitting the highest level since December 2019. The price is pulling away from that level now, but we will be looking for a bullish continuation from here if the price can hold above $1.3284.

Ultimately, we are looking at a well established uptrend here, and that remains in play despite yesterday's initial failure to back up the Chair of the Fed, Jerome Powell, dollar decline. As such, further upside looks likely, with a break below trendline and $1.3053 support needed to break from this outlook.

AUD/USD breaks from consolidation phase

AUD/USD has managed to break into a fresh 20-month high this morning, with the pair following up on the latest trendline rebound. The break through $0.7204 provided a short-term double bottom formation, and the rest is history.

With a standard deviation channel drawn on, we can see that this rally could soon become overstretched and bring about a fresh pullback to continue the trajectory over the past two months. However, such a move would simply look to provide a retracement within a wider uptrend. As such, a bullish outlook remains in play as long as we remain above $0.7135.

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