EUR/USD and GBP/USD drift lower, while AUD/USD resumes range

EUR/USD consolidation continues after recent declines

EUR/USD has been in consolidation mode over the course of this week, coming off the back of prior losses.

There is a good chance we could see the price rise from here to post another upward retracement, yet we would need to see a break through the $1.1114 resistance level to bring that view into play. To the downside, watch out for a break below $1.1066 to bring about a bearish continuation signal.

GBP/USD turns lower from key resistance

GBP/USD saw a ramp up in volatility yesterday, with the pair surging back into Friday's high of $1.2175. We are seeing the price turn lower since, yet that break into a new high signals the potential for further upside.

Ultimately, we are trading within a period of great uncertainty, with a vote of no confidence expected in early-September likely to guide the direction for the pound in the future. For now, the price does still trade within a wider bearish trend, with a rally through $1.221 required to negate that trend. However, with the rise above $1.2175, there is a good chance that we could see further upside to come, where a break below $1.2064 would be required to bring a more confidence bearish picture.

AUD/USD back into consolidation range

AUD/USD declines have proven somewhat short-lived, with the breakdown below $0.677 bringing little significant downside.

Instead, we have seen the price rise back into that same $0.677-$0.6795 range, with both support and resistance being respected. With that in mind, watch out for the breakout through either of those two levels, where consolidation is expected to continue until such a breakout occurs.