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EUR/USD and GBP/USD fall but AUD/USD rallies in wake of RBA cut

Weaker economic data have put pressure on the euro, while the Australian dollar has rallied after the RBA cut rates, recovering some of the ground lost yesterday.

EUR/USD in middle of rising channel

The EUR/USD pair has climbed higher since late May, and has formed a rising channel, with a series of higher highs and higher lows.

It dropped back from $1.141 and the top end of the channel in the latter half of June, with a drop back towards $1.13. Further declines might find support at $1.125 and the lower bound of the channel. A recovery above $1.13 would target $1.14 and then the top end of the channel towards $1.145.

GBP/USD continues its decline

Losses continue here for GBP/USD after the price failed to break $1.278 in the last weeks of July.

Further declines head towards $1.2589, and then down to the mid-June low at $1.2504. Trendline resistance from the June 25 peak at $1.278 remains intact, so any push higher needs to clear $1.27 to avoid becoming a fresh selling opportunity.

AUD/USD rallies after RBA cut

The sell-off into the Reserve Bank of Australia (RBA) meeting last night proved to be a strong buying opportunity for AUD/USD, with the price bouncing off the 50-day simple moving average (SMA) at $0.6955.

Further gains target $0.703, with a move above here creating a new higher high. If the price falters and moves back below $0.695 then a more bearish view emerges, with the downtrend since January 2018 reasserting itself.

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