EUR/USD, GBP/USD and AUD/USD questions remain amid recent consolidation
EUR/USD, GBP/USD, and AUD/USD continue to consolidate, with breakout required to bring more outlook going forward.
EUR/USD turning lower within consolidation phase
EUR/USD is turning lower following a rally into the 76.4% Fibonacci level, with the pair looking set to continue its recent consolidation phase.
Given the fact that this consolidation comes around a long-term descending trendline, there is a possibility that we are looking at topping pattern here. A break below the $1.1711 level would be required to bring such a picture into life. Until we see a break from this recent $1.1711-$1.1916 consolidation phase, opportunities can come in playing the range. With the price breaking through $1.1793 following a rise into Fibonacci resistance, there is a good chance we will see further downside over the short term.
GBP/USD consolidation continues around trendline resistance
GBP/USD is similarly consolidating after a rally into long-term trendline resistance.
That multi-year trendline means we need to see a break through the $1.3186 level to bring about a fresh buy signal for the pair. To the downside, a break below $1.3005 would bring about a bearish reversal signal to build on the recent respect of trendline resistance.
AUD/USD falls back towards trendline support
AUD/USD has weakened back towards an inside trendline, as the pair attempts to create another base to move higher.
The long-term uptrend points towards further upside, but a break through the $0.7190 level would bring greater confidence that such a bullish break is going to occur. Given the recent respect on 76.4% support at $0.7116, that bullish outlook is preferred. To the downside, we would ultimately need to see a break through the $0.7076 level to bring about a bearish outlook.
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