EUR/USD, GBP/USD and AUD/USD gains start to fade after recent rallies
EUR/USD, GBP/USD and AUD/USD are showing signs of potential impending weakness, as the recent rallies start to lose momentum.
EUR/USD breaks through key resistance
EUR/USD has seen huge gains throughout the week, with the pair rallying through the crucial $1.1111 resistance level. That break points towards further upside, yet the size of that latest surge does raise the risk of a retracement for the short term.
With the price falling back to that $1.1111 level, watch out for whether it holds as support. Otherwise, should we simply push onwards from here, it makes sense to watch for a break through the $1.114 resistance as a bullish breakout signal.
GBP/USD rally continues, yet questions remain
GBP/USD has been surging higher this week, as the prospect of a potential deal has improved sentiment ahead of the European Council summit.
With a Brexit deal finally agreed and the summit underway, market sentiment is now dictated by the markets perception over whether this bill can pass through the UK parliament. Major doubts reman over that issue, hence the inability to maintain the initial gains seen yesterday. For now, the uptrend seen through the week remains intact, pointing towards further upside. A break below $1.2749 would be required to negate this current uptrend.
AUD/USD rallies into Fibonacci resistance
The AUD/USD uptrend has continued this week, with the pair pushing into the highest level in over a month overnight.
The wider bearish trend does remain intact, and thus the lack of momentum around the 76.4% Fibonacci resistance level points towards the possibility of a bearish turnaround today. A break below $0.6814 would be required to bring about a more bearish picture for the short term. Also watch out for a stochastic breakdown below the 80 threshold, signalling a bearish turnaround in momentum.
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