EUR/USD, GBP/USD, and AUD/USD decline towards key support
EUR/USD, GBP/USD, and AUD/USD are all declining amid a late resurgence for the dollar last week.
EUR/USD reverses lower after recent gains
EUR/USD sold off sharply at the end of last week, with the pair hitting the lowest level in more than a week. Given the wider breakout from a long-term wedge formation, this move looks like a retracement before we turn higher once more.
As such, watch out for the Fibonacci retracement levels as potential turning points. We are currently trading at the 61.8% level, yet a decline below here would point towards a possible move into $1.1171 (76.4%) support.
GBP/USD declines towards crucial support zone
GBP/USD has continued its declines following a breakdown below $1.2653 support. That level completed a double top formation, which has taken us into an important area of support.
With trendline and horizontal ($1.2559) support below, a break below that point would point towards a continuation of the wider downtrend for a move towards the 2019 low of $1.2435. As such, the GBP/USD bias will be dictated by the reaction of this market to this upcoming support zone.
AUD/USD hit notable support level after recent declines
AUD/USD has continued its declines, with the pair hitting the lowest level in five months. The outlook for the day will depend on the reaction to this $0.6865 support level.
The hourly chart shows the move back towards trendline resistance, raising the likeliness of a further breakdown. To the upside, we would need to see a break through the $0.6906 swing high to bring about a more bullish view. Alternately, watch for a break back below $0.6865 to bring about a bearish continuation signal.
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