EUR/USD outperforms, as GBP/USD and AUD/USD continue declines

EUR/USD is the outperformer, with GBP/USD and AUD/USD looking set to fall further.

​EUR/USD rallies into retracement zone

The EUR/USD rally has continued apace, as traders consider the potential for Federal Reserve (Fed) action in response to the coronavirus crisis. This has taken us into the 61.8%-76.4% Fibonacci zone, set within a downtrend.

Given that wider downtrend, there is a chance we will start to turn lower before long. With that in mind, the reaction or lack of reaction around the 76.4% level ($1.1021) will be crucial here as we judge whether we are heading for a break through $1.1096 or not.

GBP/USD pausing after Fibonacci breakdown

GBP/USD has been on the back foot, with fears over a no-deal Brexit pathway dragging the pound lower. The recent rally into the 76.4% resistance level ultimately resulted in a drop below $1.2887 to continue the wider bearish theme.

With that in mind, further downside looks likely for a move back below $1.2849. This bearish outlook remains in play unless we break through the recent $1.3018 peak.

AUD/USD continues its recent downtrend

AUD/USD has been on the slide, with the price heading lower yet again this morning. Coming off the back of an inside trendline, it is worthwhile following that line as a point of resistance.

With that in mind, any short-term gains are perceived as a selling opportunity. A bearish outlook is in play unless we break through the recent $0.6592 swing high.

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