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EUR/USD, GBP/USD, and AUD/USD rebound could prove short-lived

EUR/USD, GBP/USD, and AUD/USD seeing marginal gains, yet the wider bearish picture could come back into play before long.

EUR/USD declines further amid dovish ECB rhetoric

EUR/USD has continued its decline, with a dovish message from the President of the European Central Bank (ECB), Mario Draghi, helping drive the euro lower yesterday.

This took us into the deep retracement zone between the 61.8% and 76.4% Fibonacci levels. Given the prior wedge breakout, this looks like a retracement before we turn higher. However, much of that will come down to whether the Federal Reserve (Fed) decides to cut rates later today. In any case, a bullish signal comes with a break through the $1.1247 level. Until then, another leg lower remains a distinct possibility.

GBP/USD turns higher after break below key support

GBP/USD is starting to gain ground after yet another phase of weakness for the pair.

This recent break below $1.2559 and trendline support signals a likely wider bearish phase coming into play. However, for now we could see the pair start to gain ground, with a rise through $1.2605 providing us with a more bullish outlook for the short term. That being said, such a move would only look like a retracement of the decline from $1.2763. Thus, a bearish medium-term outlook remains as long as we are below that $1.2763 level.

AUD/USD gains ground, yet bearish outlook remains

AUD/USD saw a rare rebound yesterday, with the pair rising back above the crucial $0.6864 breakdown level.

The initial fall below that level signals a return to the wider bearish outlook for the pair, with further downside looking likely before long. A rise through $0.6884 would signal a potential bullish short-term picture coming into play. However, whether that happens or not, a bearish outlook remains unless we see a break above $0.7021.

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