EUR/USD, GBP/USD and AUD/USD head down towards key support levels
EUR/USD, GBP/USD and AUD/USD head lower, but key hurdles remain before a bearish reversal comes into play.
EUR/USD pulls back as the dollar strengthens
EUR/USD is heading lower once again today, with price currently on track to post a third consecutive loss in as many days this week. The declines we are seeing across equity markets are therefore being reflected here, with fears growing to the benefit of the dollar. Should we see risk-off sentiment continue, this could mark the beginning of a bearish turn for the pair.
Keep an eye out for the latest GDP revision as a potential driver of market volatility this morning. Meanwhile, any further downside would need to bring a break below the $1.029 swing-low to end the recent trend of higher lows. Until that level breaks, this near-term uptrend remains in play.
GBP/USD turns lower after reaching key resistance
GBP/USD has similarly been hit over the course of this week thus far, with price turning lower since Monday’s five-month high. The ability to maintain this recent uptrend will be key this week, with a break back below the $1.19 swing-low required to bring a bearish signal. Today’s Halifax HPI reading of -2.3% highlights the economic collapse that is underway as a result of higher interest rates.
It is data like that which will likely help drive the dollar higher, to the detriment of the pair. Looking ahead, Friday’s US PPI figure will provide another potential market mover should we see a fresh surge in prices. For traders, keep an eye out for whether price continues the recent uptrend or breaks back below the $1.19 level to end this recent recovery phase.
AUD/USD rolling over after deep retracement
AUD/USD has started to show signs of a bearish reversal, with price falling back after Monday’s push into a two-month high. The quarterly GDP reading of 0.60% fell short of the market expectations, bringing another leg lower for the Australian dollar.
While the short-term uptrend remains in play, traders should keep a close eye out for whether price can break below the $0.664 support level to bring a bearish outlook back into play.
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