EUR/USD, GBP/USD and AUD/USD rally as dollar declines
EUR/USD, GBP/USD and AUD/USD surge as risk-on sentiment dents dollar demand.
EUR/USD tentatively breaks into fresh high
EUR/USD has been on the rise since pulling back into the 76.4% Fibonacci support level at the close of trade on Friday. That rise at the beginning of the week highlights the risk-on sentiment throughout global markets, which is lessening demand for the dollar.
This has taken us through $1.1145 resistance, bringing the highest level since mid-March. While we have seen an initial tentative break through $1.1147 level, it is going to be the key level to watch as it represents the peak from 27 March. As such, with the stochastic potentially rolling over around this key resistance level, there is a chance we will see the pair roll over again.
However, whether we see that short-term pullback or not, this bullish trend remains intact unless we see the $1.1081 support level broken.
GBP/USD continues its ascent following Friday volatility
GBP/USD has also gained ground at the start of this week, following on from a week of substantial volatility that ultimately provided us with significant upside. While this looks like a retracement of the $1.2643-$1.2079 sell-off, we are yet to hit the 61.8% ($1.2428) or 76.4% ($1.251) Fibonacci levels.
Watch out for how the market reacts to those resistance levels, with the bearish trend likely to return before too long. Until then, further upside looks likely unless the price breaks below $1.229 support.
AUD/USD surges as China fears are allayed
AUD/USD managed to break through the key $0.6685 resistance level after US President Donald Trump opted against ripping up the US-China trade deal on Friday. This provided a continuation of the uptrend that has dominated the recent months, with few major resistance levels within reach.
As such, further upside looks likely, with a break below $0.6719 required to start providing a picture of wider retracement of the rally from $0.6618.
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