EUR/USD held up at SMA support
EUR/USD has been turning lower from trendline support over the past 24 hours, with the pair seeking to continue the pullback following the late-August rebound. This move lower is likely to continue, yet with the 200-day simple moving average (SMA) on the four-hour chart below, we have a key hurdle to overcome.
Given the recent respect of this moving average, it makes sense to await a break and closed candle below that level as a signal of further downside. Conversely, a break above $1.1650 would point towards a resurgence for the pair.
EUR/USD price chart
GBP/USD seeks to maintain bullish phase
GBP/USD has been regaining ground over the past week, fueled for the most part by shifts in perception over Brexit talks. We have seen the pair drift lower since yesterday’s peak.
However, with this weakness comes expectations of another push higher before long. So far, we have seen a 61.8% retracement, and any further short-term weakness would point towards the 76.4% retracement as the next support level to watch. We would need a break below $1.2897 to negate this short-term uptrend.
GBP/USD price chart
AUD/USD consolidation unlikely to last
AUD/USD has been consolidating this week, following on from a sharp drop towards the end of last week. Despite the fact that we are trading sideways, there is a good chance we will see another leg lower before long.
That being said, given the size of that prior sell-off, there is still a potential for a short-term retracement. As such, look for a break below yesterday’s low as a signal of another leg lower. Otherwise, a break through trendline resistance would point towards a potential short-term rebound.
AUD/USD price chart