EUR/USD, GBP/USD and AUD/USD weaken on dollar strength
EUR/USD, GBP/USD and AUD/USD start to roll over after market weakness provides short-term gains for the dollar.
EUR/USD rebounds into key resistance zone
EUR/USD has been on the rise since the Wednesday lows, with the pair pushing into the 76.4% Fibonacci retracement level.
The key here is that the pair would need to break through the $1.1843 swing-high to signal an end to the recent pullback. However, given the mid-sized retracement seen thus far, there is still another chance of a move lower from this Fibonacci level. As such, the reaction to this Fibonacci level will be crucial in determining the outlook from here.
GBP/USD rebound starts to falter after early gains
GBP/USD gains seen overnight are starting to ease back as the pair gives back some of the gains seen throughout much of November.
Given the mid-sized pullback thus far, there is a good chance we could see further downside from here. The short-term trend of lower highs and lows does point towards this current rise being a potential precursor to further downside. As such, this period of weakness is likely to continue until we see a break through the prior swing high (currently $1.3228).
AUD/USD rolls over after recent resurgence
AUD/USD has started to break lower after a strong run at the beginning of the month.
The decline below $0.7252 brings about a bearish reversal signal for the near term, with the price subsequently trading within a descending channel. A break back up through the prior high of $0.7318 would bring about a fresh bullish signal. However, until then it looks likely we will see further short-term gains to give back some of those recent gains.
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