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EUR/USD, GBP/USD and AUD/USD breaking key resistance

EUR/USD, GBP/USD and AUD/USD have gained ground this week, and with resistance being broken, further upside could be on the cards.

EUR/USD rallies into deep retracement

EUR/USD has rallied into a deep retracement over the course of the week, with the price rising into the zone between the 61.8% and 76.4% Fibonacci retracements.

The four-hour chart below highlights the ongoing bearish trend, with a break through $1.1154 needed to move into a more bullish theme. Until then, it is likely it will soon turn lower, with a decline below $1.1016 providing a bearish confirmation signal.

GBP/USD starts to fade after rally through key resistance

GBP/USD has been on the rise, with the break through the $1.2310 peak bringing about a new one-month high for the pair. Price is starting to fade here, and with the breakout signal seen yesterday there is a chance we are seeing a retracement phase. Much of the sentiment around this pair will depend on whether we see anti no-deal legislation passed and whether an election is called for October or pushed further into the future.

An October election is likely to be sterling negative, while a delay to that election timeline would likely bring upside for the pound. For now, the pullback we are seeing is likely to be a short-term move, with a bullish theme in play unless we see a break below $1.2210.

AUD/USD breaking through key resistance zone

AUD/USD has been outperforming throughout the week, with the price entering, and now breaking through, a crucial area of resistance. The $0.6831 level marks the top of this historical resistance zone, with the ability to move past that level pointing towards a wider bullish theme coming into play. That wider picture shows this rally as being a retracement of the selloff from $0.7082.

Therefore, with continued price action above $0.6831, a bullish theme continues, while a break below $0.6807 would be required to negate some of that bullish momentum.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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