EUR/USD, GBP/USD and AUD/USD weaken after recent gains

EUR/USD, GBP/USD and AUD/USD pull back, yet could this provide a potential opportunity for longs?

EUR/USD falling back within rising wedge

EUR/USD has been moving lower over the course of this morning, with the selling ramping up as the Europeans come back to their desks.

However, the recent uptrend does remain in tact despite the bearish rising wedge formation. With that in mind, trendline and Fibonacci support could play a key role if we continue to move lower. A break below $1.0892 would be needed to bring about a bearish picture once more. Until then, such pessimism is reserved for the very short term only.

GBP/USD decline could bring bullish reversal today

GBP/USD has also been easing back overnight, with the price closing in on the 61.8% Fibonacci retracement at $1.2571. Between the 61.8% and 76.4% levels, there is a good chance we will see the bulls come back into play to continue this recent uptrend.

With the lower boundary of a standard deviation channel also providing support, bullish positions are preferred unless we see a break below the $1.2524 swing low.

AUD/USD breaks key support after recent rally

AUD/USD could provide us with a clue of forthcoming price action elsewhere, with the pair dropping through channel and horizontal support this morning. The release of a record decline in the Westpac consumer sentiment reading certainly didn’t help things.

Nevertheless, with the price having broken from its uptrend, further downside looks likely. However, with the stochastic well into oversold territory, a break through the 20-mark could bring a short-term rebound. We would need to see a rise back through $0.6445 to bring about a renewed bullish outlook.

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