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EUR/USD, GBP/USD, and AUD/USD regain ground from key support

EUR/USD, GBP/USD, and AUD/USD start to regain ground, but will this mark the end of the recent phase of weakness?

EUR/USD rebounds from key support

EUR/USD has been on the rise after last week’s decline took the pair back into the notable $1.2059 support level. With the price fighting back, the key here is whether we see price break through the $1.2177 swing high.

With the stochastic starting to roll over within overbought territory, there is still a risk we could continue this intraday trend of lower highs by reversing lower before long. However, with a wider uptrend in play and price approaching the first notable swing high, a continuation of this recovery could soon provide us with a break that negates much of the bearish sentiment built over the past week.

GBP/USD recovers from Fibonacci support

GBP/USD has managed to regain much of its lost ground following a decline into the 76.4% Fibonacci support level. The wider uptrend always remained intact unless the price broken through the $1.3451 support level, and thus it is likely we will ultimately break up through the prior high of $1.371.

With the price starting to lose traction this current candle, a stochastic break back below the 80 threshold could bring doubts over whether this straight-line recovery is going to continue. Nevertheless, with the uptrend remaining intact, the continued trend of higher lows does ultimately point towards further gains to come.

AUD/USD making slow progress after finding support

AUD/USD similarly managed to find support on a key swing low, with the pair turning higher off the $0.7666 level. However, we are not out the woods yet, with the recent trend of lower highs providing a warning sign that this could be another retracement. A break up through $0.7805 would bring about a more reliable bullish continuation signal for the pair.

However, until then it is worthwhile being cautious around these $0.7749 and $0.7771 Fibonacci resistance levels. To the downside, the fact that we have not yet broken out of this bullish trend means it makes sense to watch for a breakdown below $0.7659 before looking for bearish positions.

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