EUR/USD and AUD/USD gain ground, as GBP/USD turns lower
EUR/USD, and AUD/USD gain ground, yet GBP/USD remains at risk of further losses.
EUR/USD consolidation points towards further upside
EUR/USD has been in consolidation mode over much of the week, with the upside momentum being subdued in the wake of a sharp rally into the 200-day simple moving average (SMA). That indicator has remained crucial over the week, with the price respecting it on four occasions.
However, with the price trading largely sideways, there is a good chance we will see another push higher before long. A break and close above that SMA is needed to provide us with a bullish breakout signal. Alternately, a break below $1.1167 would bring a more bearish short-term picture into play.
GBP/USD gradually reversing lower after Fibonacci resistance
GBP/USD has been gradually reversing lower in the wake of a rally into the 76.4% Fibonacci resistance level on Tuesday. That move lower confirms the wider bearish trend that remains in play for this pair.
Thus, we are expecting that bearish pattern to continue developing, with a break below the $1.2079 level looking likely before long. Conversely, a break through trendline resistance and the $1.2182 swing high would start building a somewhat more bullish picture for the short term.
AUD/USD rallies into key resistance zone
AUD/USD has managed to fight back after a sharp decline in the early part of the week. That rally has taken us through the $0.6801 resistance level, yet we have moved into a crucial resistance zone of $0.6827-$0.6831.
That zone represents a few historical lows, and thus there is a chance we could see it respected once again. With that in mind, the near-term outlook will be dictated by the ability or inability to break through that zone.
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