EUR/USD, GBP/USD and AUD/USD pause after recent gains
EUR/USD, GBP/USD and AUD/USD have been on the rise, with hopes for a Brexit deal ensuring the pound is an outperformer.
EUR/USD consolidates after Friday’s high
EUR/USD is consolidating once again today, with the pair failing to overcome the high set on Friday. The rally we have been seeing over the course of October looks like a retracement of the sell-off from $1.1111.
With that in mind, the bears are expected to come back into play before long, with the price having rallied into the 76.4% Fibonacci retracement at $1.1055. Indeed, it makes sense to look for short positions, with a break through $1.1111 required to negate this bearish outlook.
GBP/USD remains elevated with further volatility ahead
GBP/USD has been on the rise over the past week, with the pair hitting a three-month high on Friday. For all the hope of a potential Brexit deal, there is also a strong chance that such a deal could fail or prove impossible given time constraints.
Therefore, volatility remains the base case, especially with the UK jobs report this morning. As such, watch out for further news-fueled volatility, with a break through $1.2706 required to bring about a more confident bullish outlook for the short-term. Otherwise, there is a risk of a retracement given the size of recent gains.
AUD/USD starts to weaken after 61.8% retracement
The AUD/USD pair has started to turn lower, following on from a rally into the 61.8% Fibonacci retracement level.
The wider picture remains bearish for this pair, and there is a good chance that this rebound could unravel before long. Confirmation of such a bearish view comes with a break below the $0.6751 swing low. However, it is worthwhile noting that this pair will be highly sensitive to any breakthrough or breakdown in the US-China trade situation.
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