US Dollar, Euro, Australian Dollar, British Pound, EUR / USD, AUD / USD, GBP / USD – SPEAKING POINTS
- EUR / USD rise became more pronounced in mid-July, but recent price action suggests a pullback
- AUD / USD stagnated in a resistance range of more than a year, opening the door to withdrawal
- GBP / USD cleared multiple ceiling – be he to lose steam before retest 1.3212?
EUR / USD analysis
EUR / USD has risen along a steep upward-sloping support channel since early May, and in early July the pair rose to an even more ambitious slope. However, recent price action ahead of a key technical level suggests that the EUR / USD may fall. The couple’s apparent reluctance to break the March 2019 swing at 1.1815 could signal the start of a retreat. This may lead to retesting for bullish integrity.
EUR / USD – Daily chart
EUR / USD chart created with TradingView
AUD / USD forecast
AUD / USD shows signs of hesitation at the bottom edge of a key resistance range between 0.7181 and 0.7206. The pair also stagnated at these levels in both April and May 2019. If these barriers are not removed with a follow-up, the bears could be inspired to break out of their caves and put further pressure on the AUD / USD.
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With the negative RSI divergence also showing slow bullish momentum, the path of least resistance supports a bearish bias, at least in the short term. AUD / USD may then retreat to a family tipping point at 0.7018. Follow me on Twitter @ZabelinDimitri for more dissections in key technical sections.
AUD / USD – Daily chart
AUD / USD chart created with TradingView
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GBP / USD Outlook
GBP / USD has not only invalidated downward resistance dating back to December 2019, but has also broken through the previous three layers of support turned resistance at 1.2751, 1.2816 and 1.2877, respectively. The next target may be a family stopping point at 1.3212. That said, if the pair does experience a cooling down period, the GBP / USD pair may retest the familiar tipping point at 1.2877 before bouncing or continuing to slide.
GBP / USD – Daily chart
GBP / USD chart created with TradingView
— Written by Dimitri Zabelin, Forex Analyst for DailyFX.com
Contact Dimitri, use the comment section below or @ZabelinDimitriTwitter
