EUR/USD, GBP/USD and AUD/USD rally towards major breakout levels
EUR/USD, GBP/USD, and AUD/USD rally towards major resistance levels, with breakout required to signal potential bullish continuation.
EUR/USD continues its climb to consolidation resistance
EUR/USD has managed to continue its ascent, with the pair moving back into the top end of a consolidation phase that has been playing out over the recent weeks.
With a long-term descending trendline in place around these levels, we need to see a break through this $1.1916 level to bring about a fresh bullish breakout signal for the pair. Until that happens, there is still a chance we start to reverse lower from here given the importance of this resistance zone.
GBP/USD rallies into major resistance level
GBP/USD has been on the rise overnight, with the pair pushing back towards the crucial $1.3186 level ahead of Brexit talks.
Much like EUR/USD, we have a major multi-year descending trendline coming into play at the top of this consolidation zone. Thus, it makes sense to await a break through $1.3186 if we are looking for longs. Until then, there is a chance we could see the pair deteriorate if such a breakout does not occur.
AUD/USD rebounds from trendline confluence
AUD/USD has continued its rise, following a decline into a confluence of support last week. With the price subsequently pushing through the $0.7188 level, we saw an inverse head and shoulders formation completed to drive us towards the $0.7243 level.
A break through that level would signal a continuation of the wider uptrend, with a fresh 18-month high coming into play. That break does look likely from here, yet it is worth noting that this level is very notable when considering the important resistance in play for EUR/USD and GBP/USD. As such, a break through $0.7243 would bring about a bullish break, pointing towards another leg higher from here.
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