EUR/USD, GBP/USD and AUD/USD all continue to fall
Dollar strength and ECB jawboning at the main elements at play in FX markets at present, as key pairs continue to retreat for the time being.
EUR/USD continues to weaken
EUR/USD has fallen sharply for another day, as the European Central Bank (ECB) does its best to talk the currency down.
The pair now finds itself back at the rising trendline from the beginning of August. A break above $1.184 would signal a rally through the upper band of the descending channel seen over the past two days. Alternatively, the price will need to push below $1.178 to consolidate the bearish view and open the way to further downside.
GBP/USD retreats again
Dollar strength continues to weigh on GBP/USD, with yesterday’s attempt to rally faltering and leading to further downside.
A possible rally through $1.332 would mark a break to the upside from trendline resistance, while a move back below $1.3254 would put the price back below the twin peaks of mid-August and mark a more bearish development.
AUD/USD resumes its move lower
The weakness here is an interesting counterpoint to the strength in equities, as AUD/USD retreats from the high seen at the end of August.
Intraday rallies have failed to gain traction, and the overall move lower continues. There is some distance before the August rising trendline comes into play, so bulls will hope that a higher low can be established at the 200-day simple moving average (SMA) of $0.7278.
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