EUR/USD, GBP/USD and AUD/USD expected to reverse lower once more
EUR/USD, GBP/USD and AUD/USD see tentative gains, yet further downside looks likely.
EUR/USD consolidating after yesterday’s decline
EUR/USD managed to decline further following early gains yesterday, with the pair ultimately breaking into the lowest level in a week.
We continue to trade within a short-term downtrend that looks to be reversing the gains seen throughout much of October. The shallow nature of this current consolidation looks likely to bring about another round of downside before long. This short-term sell-off is likely to persist, with another leg lower expected unless we see a break above $1.1163.
GBP/USD regaining ground yet bearish play likely to return
GBP/USD is on the rise this morning, despite the political deadlock that appears to be playing out in the UK.
The recent breakdown below trendline and horizontal support pointed towards further downside to come as the pair retraces the recent rebound. As such, watch for another leg lower, with a bullish view only coming back into play with the break through $1.295.
AUD/USD rebounds within short-term downtrend
AUD/USD has similarly been regaining ground this morning, following on from a bearish trend that has dominated much of this week.
This looks like it could bring us into trendline resistance, with that bearish recent trend looks likely to return. With that in mind, we would need to see a break through the $0.6857 to signal the beginning of another bullish stage. Until then, another bearish turn looks likely before long.
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