Looking to Play Bigger Euro and Pound Recovery
The trendline that extends off of the late February highs in EURUSD remains key to the next move. Exceeding that line (roughly 13100) today would suggest that a larger recovery is underway - probably towards 13300.
The GBPUSD rally from Friday's low is unfolding impulsively. As mentioned in the technicals last week, 'the longer term trend is probably down towards the 2009 low at 13500 but a rally back to 15320 or even 15400 would fit within the confines of a normal corrective advance.' Near term traders may wish to turn bullish on weakness below 15105 for a run at 15320. Those with holding times over 2 days should wait to short at higher levels (probably 15320).
The AUDUSD is again pressing against trendline resistance. Sunday/Monday's reversal is significant when one considers a potentially completed 5 wave decline from the January high. A recovery towards 10375-10415 may be underway.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.