EUR/USD, GBP/USD and AUD/USD start to regain ground lost after bumper payrolls
The dollar eases back after Friday’s payrolls boost, with EUR/USD, GBP/USD and AUD/USD regaining ground.
EUR/USD declines into range bottom
EUR/USD has managed to return towards the lower threshold of a range that has been in play for three weeks now. That consolidation marks a period of respite from a wider bearish trend that is worthwhile noting as a potential guide of where we go once the range breaks.
Nonetheless, while we saw Friday’s blockbuster payrolls release bring significant upside for the dollar, that appears to have been limited in nature, with EUR/USD already starting to regain some ground from the lower boundaries of this range.
A push higher from here is therefore a distinct possibility, with the range expecting to remain in place until we see the price break through either $1.0119 or $1.0269. To the upside, also keep an eye out for the descending trendline for near-term resistance.
GBP/USD stabilizes around trendline support
GBP/USD has been attempting to stabilise after Friday’s non-farm payrolls (NFP) driven collapse. The existence of a descending trendline drawn from late April brings a potential reversal point that has been respected thus far.
Notably, this looks to bring a potential wider retracement of the $1.189 to $1.2293 rally. Thus there is a chance we move higher from here, with a break back below the $1.189 level bringing greater confidence that this pair is set to continue the wider bearish trend.
To the upside, a move up through the $1.2217 swing high would bring expectations of a bullish continuation.
AUD/USD attempting to claw back losses but risk remains
AUD/USD has been showing signs of a potential top here, following a period of gains that took the pair into the 61.8% Fibonacci resistance level. The wider bearish trend does point towards a potential break lower before too long, and the recent creation of lower highs and lows does signal that we could be due that move.
While the price does move higher this morning, we are seeing the potential for a retracement before the pair comes under pressure once again.
A push up through the $0.699 swing high would be required to bring about a more positive outlook for the pair.
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