USD rally resumes, a look at GBPUSD and AUDUSD

USD’s rally resumed in European session today, breaking through last week’s high against all major currencies, except CAD.

Momentum is also solid as seen in USD action bias table.

In particular, GBP/USD takes out 1.3711 key support level which indicates medium term reversal. With 6H action bias in downside red all the way through, and D action bias staying in red too, we’d now expect GBP/USD to sustain below this level to confirm the bearish case.

38.2% retracement of 1.1946 (2016 low) to 1.4376 at 1.3448 will be next target.

AUD/USD will be a pair to watch as it’s heading to 0.7500 key support. 6H action bias is staying neutral so far, due to the deceleration late last week and on Monday. But firm break of 0.7500, with 6H action bias turning downside red will indicate solid downside momentum. And the by then, the medium term corrective rise from 0.6826 should be considered finished.