AUD/USD and EUR/JPY fall further, while EUR/GBP makes headway
While the Australian dollar is still losing ground to the greenback, the euro has strengthened against the pound but weakened against the yen.
AUD/USD still under pressure
Worries about China’s economy and falling commodity prices have hit AUD/USD, driving the pair to its lowest level in a month.
The price is now below the 50-day simple moving average (SMA), currently $0.667, and further losses would see it test the 100- and then 200-day SMAs ($0.6608 and $0.6586). Bulls will be hoping for a recovery back above the 50-day SMA to suggest that a low has been formed.
EUR/GBP rebounds from 2-year low
The downtrend continues with EUR/GBP, as expectations of more dovish action from the European Central Bank (ECB) combine with suggestions that the Bank of England (BoE) is less likely to cut rates in August.
The price hit a two-year low last week, before rebounding slightly. However, the overall bearish view remains firmly in place. In the short-term, a move above Friday’s high at £0.8432 may open the way to a test of the 50-day SMA. Before this however, the price needs to break trendline resistance from the May highs.
EUR/JPY heads lower
Yen strength continues to drive the EUR/JPY price lower, dropping in back below the 50-day SMA once more.
The uptrend is still in place, though a close below the 50-day would mark a change of regime, weakness since March having avoided a close below this indicator. Hopes of a continued rally were bolstered on Monday by the close above the 50-day, so the loss of this could point towards additional near-term downside.
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