EUR/USD, AUD/USD, GBP/USD Analysis. US Dollar At a Turning Point?
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US Dollar, Euro, Australian Dollar, British Pound, EUR/USD, AUD/USD, GBP/USD – TALKING POINTS
- EUR/USD climb turned steeper in mid-July, but recent price action hints at pullback
- AUD/USD stalling at an over one-year resistance range, opening the door to retreat
- GBP/USD cleared multiple ceiling – will the pair lose steam before retesting 1.3212?
EUR/USD has climbed along a steep, upward-sloping support channel since early May, and in early July the pair rose at an even more ambitious incline. However, recent price action ahead of a key technical level suggests EUR/USD may pull back. The pair’s apparent reluctance to break the March 2019 swing-high at 1.1815 could signal the start of a retreat. This may lead to retesting the integrity of the uptrend.
EUR/USD – Daily Chart
EUR/USD chart created using TradingView
AUD/USD is showing signs of hesitation at the bottom lip of a key resistance range between 0.7181 and 0.7206. The pair also stalled around these levels in both April and May of 2019. Failure to clear these barriers with follow-through could inspire bears to come out of their caves and further pressure AUD/USD.
With negative RSI divergence also showing slowing upside momentum, the path of least resistance supports a bearish bias – at least in the short term. AUD/USD may then retreat to a familiar inflection point at 0.7018. Follow me on Twitter @ZabelinDimitri for more dissections on key technical cross-sections.
AUD/USD – Daily Chart
AUD/USD chart created using TradingView
GBP/USD has not only invalidated descending resistance dating back to December 2019 but also broken above three key former support-turned-resistance layers at 1.2751, 1.2816 and 1.2877, respectively. The next target may be a familiar stalling point at 1.3212. Having said that, if the pair undergoes a cooling-off period, GBP/USD may retest the familiar inflection point at 1.2877 before either bouncing or continue sliding.
GBP/USD – Daily Chart
GBP/USD chart created using TradingView
--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com
To contact Dimitri, use the comments section below or @ZabelinDimitri Twitter
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