EUR/USD, GBP/USD and AUD/USD all roll over after recent rise
EUR/USD, GBP/USD and AUD/USD start to ease back as stochastic reversal highlights easing momentum.
EUR/USD reversing from key resistance zone
EUR/USD gains seen yesterday have taken us back into the $1.0991-$1.1019 resistance zone, with the price turning lower in response. The breakdown below 80 on the stochastic points towards a potential reversal from here, with a rally back above the $1.1018 level required to bring about a bullish continuation breakout signal.
Until then, the two-month range looks likely to persist with another move lower from here.
GBP/USD rebound starts to ease back
GBP/USD rallied into the 50% Fibonacci resistance level yesterday, with the pair easing back since. From a wider perspective, this rally looks like a retracement of the decline from $1.2643.
Whether we see a deeper pullback remains to be seen, yet the break back below 80 on the stochastic highlights a bearish shift in momentum taking hold today. As such, while a bearish outlook is in play, we could see a deeper retracement with another leg higher at some point.
AUD/USD turning lower from major resistance level
AUD/USD rallied into the crucial $0.666 resistance level yesterday, with the pair starting to ease back somewhat overnight. Once again we are looking at a potential bearish shift in price action as the momentum rolls over as indicated by the stochastic oscillator.
Nevertheless, the trend here is clearly bullish, with a short-term pullback only having wider consequences for this uptrend if the price breaks below the $0.6506 level. Until then, there is a good chance we will see another push to break through the key $0.6685 resistance level.
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