EUR/USD starts to regain ground, while GBP/USD and AUD/USD hit trendline support
EUR/ USD and GBP/USD declines, yet downside could be limited. Meanwhile, we await a breakout from AUD/USD consolidation.
EUR/USD starts to stabilize after recent losses
EUR/USD has been on the back foot for much of last week, with the pair declining below the 76.4% Fibonacci retracement level on Friday.
However, we are starting to see some bullish price action take shape, with the potential for an inverse head and shoulders formation. A break through the $1.1106 resistance level would be required to bring such a bullish outlook for the short term. Alternatively, we would need to see the price decline below $1.1066 to bring about a renewed bearish outlook.
GBP/USD falls back into trendline support
GBP/USD has been on the rise for much of last week, with the cross-party plans to avoid a no-deal Brexit providing a boost to sentiment.
This morning we are seeing a sharp decline back into trendline support, coming off the back of a rally into the 76.4% Fibonacci resistance level. Given the wider bearish trend, there is a chance we are seeing the beginning of a bearish phase for the pair. However, we are yet to see confirmation of that bearish picture reemerging, with a break below $1.2077 required to bring such a view. To the upside we need to see $1.221 broken to bring a new bullish outlook for the pair.
AUD/USD consolidation likely to bring bearish breakdown
AUD/USD has been consolidating over the course of the past five trading days, with the 200-day simple moving average (SMA) providing a crucial indicator to cap any downside.
The recent trend has been one of lower highs and lower lows, pointing towards another bearish move coming into play before long. Given the tight nature of this consolidation, a breakout from this symmetrical triangle would be easy to read, with a small stop-loss utilized in response. As such, a bearish picture comes back into play with a break below $0.6772, while a rise through $0.679 would bring about a more bullish outlook.
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