EUR/USD, GBP/USD and AUD/USD breaking key resistance
EUR/USD, GBP/USD and AUD/USD have gained ground this week, and with resistance being broken, further upside could be on the cards.
EUR/USD rallies into deep retracement
EUR/USD has rallied into a deep retracement over the course of the week, with the price rising into the zone between the 61.8% and 76.4% Fibonacci retracements.
The four-hour chart below highlights the ongoing bearish trend, with a break through $1.1154 needed to move into a more bullish theme. Until then, it is likely it will soon turn lower, with a decline below $1.1016 providing a bearish confirmation signal.
GBP/USD starts to fade after rally through key resistance
GBP/USD has been on the rise, with the break through the $1.2310 peak bringing about a new one-month high for the pair. Price is starting to fade here, and with the breakout signal seen yesterday there is a chance we are seeing a retracement phase. Much of the sentiment around this pair will depend on whether we see anti no-deal legislation passed and whether an election is called for October or pushed further into the future.
An October election is likely to be sterling negative, while a delay to that election timeline would likely bring upside for the pound. For now, the pullback we are seeing is likely to be a short-term move, with a bullish theme in play unless we see a break below $1.2210.
AUD/USD breaking through key resistance zone
AUD/USD has been outperforming throughout the week, with the price entering, and now breaking through, a crucial area of resistance. The $0.6831 level marks the top of this historical resistance zone, with the ability to move past that level pointing towards a wider bullish theme coming into play. That wider picture shows this rally as being a retracement of the selloff from $0.7082.
Therefore, with continued price action above $0.6831, a bullish theme continues, while a break below $0.6807 would be required to negate some of that bullish momentum.
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