EUR/USD, GBP/USD and AUD/USD likely to gain ground
EUR/USD, GBP/USD and AUD/USD could gain ground as dollar remains exposed.
EUR/USD continues to consolidate around key support
EUR/USD has been in consolidation mode over much of the week, with each move lower being capped at the notable $1.1347 support level.
That level represents the 7 June peak, alongside more recent lows. As such, the ability or inability to break through $1.1347 support is going to be key for this pair. Should the price remain above that level, a rise through $1.1391 would provide us with a bullish breakout signal to continue the recent uptrend. However, an hourly close below $1.1347 would likely bring about a wider bearish phase as the pair retraces some of the $1.1181 rally.
GBP/USD drifts lower, yet hurdles remain for bears
GBP/USD has continued to drift lower, following a surge seen throughout much of last week.
That surge took the pair into a new high given the break through $1.2763. With that in mind, there is a possibility for another move higher before long. Watch for a break through the $1.2725 swing high to bring about a more bullish outlook. Until then, a continued grind lower remains in play.
AUD/USD approaches key resistance level
AUD/USD has managed to regain ground over the course of the week, with hopes of a US-China breakthrough helping sentiment.
That rally has taken us into the crucial $0.7021 resistance level, which must be overcome to bring about a wider bullish outlook. Watch out for the reaction to that level as a guide of whether the pair goes from here.
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