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EUR/USD, GBP/USD, and AUD/USD likely to turn lower despite brief gains

EUR/USD, GBP/USD, and AUD/USD regain ground amid brief dollar weakness, yet the bears could swiftly return.

EUR/USD at risk of a bearish turn despite recent gains

EUR/USD has been on the rise since yesterdays lows, with the pair rallying back into another 76.4% Fibonacci resistance level. Looking back at the price action seen in early December, there is a risk we could be paving the way for a major head and shoulders formation.

A break below the $1.2053 level would be required to bring that into fruition. Looking at near-term price action, the recent rally appears to have been another retracement, with price rolling over from Fibonacci resistance.

With that in mind, the latest retracement looks to have provided us with another selling opportunity. A break up through the $1.2189 level would be required to start eroding that ongoing bearish story.

GBP/USD rebounds from 61.8% retracement

GBP/USD managed to surge higher from the 61.8% Fibonacci support level yesterday, with the wider pullback coming into play after dropping below the near-term $1.3636 support level.

The rise through $1.3746 resistance brings about a fresh bullish continuation signal. As such, further upside looks likely before long, with any short-term downside looking like a potential retracement rather than a wider reversal. With that in mind, a bullish view holds unless price drops below $1.3609.

AUD/USD turning lower from confluence of resistance

AUD/USD is on the back foot once more this morning, with the latest rally taking us into a confluence of trendline and 76.4% Fibonacci resistance.

The recent trend of lower highs does point towards a potential bearish phase coming into play to continue that pattern. With that in mind, a bearish outlook holds unless price rises through the $0.7782 swing high.

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