AUD/USD and EUR/JPY dive sharply and EUR/GBP edges higher
Risk-off sentiment continues to drive the Aussie dollar down against the dollar and the euro down versus the yen. Meanwhile the euro is recouping some losses against the pound.
AUD/USD slump gathers pace
The AUD/USD pair has gone from a seven-month high in mid-July to a three-month low in the space of three weeks.
It has now slumped below the June lows at $0.6576, and is now on course to the early May lows at $0.6482. After such a rapid move some consolidation would not be surprising, but the bearish view remains in place unless we see a recovery back above $0.66.
EUR/GBP holds around £0.84
The decline in EUR/GBP has slowed for now, and early trading has seen the euro strengthen versus sterling.
Once more the price is holding above £0.84. If this forms a short-term low, then the price may test trendline resistance from the May highs, before moving on to challenge the 50-day simple moving average (SMA).
EUR/JPY slumps to 3-month low
The last big fall in EUR/JPY took place in November. The past two weeks have seen the price drop over 1000 points, taking the price below the June lows, the 50-day SMA and then the 100-day SMA.
Now the 200-day SMA comes into view, along with the early May low around ¥164.12. So far, there is no sign of any recovery in the price.
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