EUR/USD, GBP/USD and AUD/USD expected to decline despite Fed easing
A bumper easing package from the Fed has not been enough to scupper the recent dollar rise, with EUR/USD, GBP/USD and AUD/USD all expected to see further downside.
EUR/USD on the rise after Fed easing
EUR/USD is pushing higher after a significant easing effort from the Fed over the weekend.
The ability to remain below the 1.1226 support level is key here, with a bearish trend in place until that level is broken. With that in mind, the current rise looks like a precursor to further downside, with descending trendline and Fibonacci resistance expected to come into play as the price rises.
GBP/USD hit hard, with further downside likely
GBP/USD has been of the harder hit currencies of late, with the divergent strategy from UK leadership pointing towards fears of a greater rise in UK cases in the coming weeks.
The pound has seen minor consolidation coming into this morning's trade, and with the price heading back towards the 1.2262 low already, it looks likely we will continue to see this pair decline from here. As such, bearish positions are preferred on a break below 1.2262, with stops placed above 1.2399. Until that breakdown occurs, there is still a chance we will continue to consolidate or retrace.
AUD/USD consolidates after recent decline
AUD/USD has been declining over the past week, with the pair consolidating into Friday's close.
That consolidation is likely to resolve with another leg lower, with a bearish outlook in play unless we see a break through the 0.6326 resistance level. Until then, it is a case of waiting until we see some form of breakdown or retracement worth selling into.
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