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EUR/USD, GBP/USD and AUD/USD rise looks to provide fresh selling opportunity

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EUR/USD, GBP/USD and AUD/USD attempt to regain lost ground, but bears stand ready to pounce.



 Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 02 September 2022

EUR/USD rebounds from key support zone

EUR/USD has been on the rise since yesterday's decline into the $0.99 to $0.992 support structure. Coming off the back of a period that saw the pair respect the 61.8% retracement on two occasions, the breakthrough $0.9971 signalled a likely bearish continuation for this currency pair.

However, with the price having held up at the bottom end of this consolidation phase, we are now pushing upwards in what looks like a likely retracement. To the upside, we should therefore keep note of the potential for another bearish turn between $1.0015 and $1.0039. Therefore, bearish positions are favoured, with a break-up through $1.0079 required to negate that short-term intraday trend. Such a break would point towards a possible wider retracement into $1.0132 resistance.

EUR/USD chartSource: ProRealTime

GBP/USD making tentative gains

GBP/USD dropped into the $1.15 support level yesterday, with the price pushing up through near term trend line resistance this morning. The wider bearish trend is well established for this currency pair, with the lack of hawkish commentary compared to the Federal Reserve (Fed) and the European Central Bank (ECB) ensuring greater downside for the pound.

With the price having hit a new two-year low, it is worthwhile noting the critical long term support level of $1.1411 which must be overcome if this bearish trend is to continue. For now, there is the possibility of further upside, but the bearish intraday trend highlights that this is likely a retracement before the pair rolls over once again. As such, bearish positions are favoured unless price breaks through $1.1694.

GBP/USD chartSource: ProRealTime

AUD/USD pauses after head and shoulders break

AUD/USD has been on the back foot over the course of the past week, with the price falling back down through the $0.78 support level. The wider long term down trend coupled with this head and shoulders brake signals a high likeliness of further downside to come.

With that in mind, any near-term gains are perceived as a selling opportunity with the US dollar expected to outperform going forward. That bearish outlook holds unless price breaks up through the latest swing high of $0.6904.

AUD/USD chartSource: ProRealTime
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