EUR/USD, GBP/USD and AUD/USD in further falls
The US dollar remains strong ahead of the monthly jobs report, with EUR/USD looking set for a return to parity.
EUR/USD takes more steps towards parity
The psychologically-important parity level looms large for EUR/USD at present, with the pair now at a fresh twenty-year low this morning.
The renewed bout of dollar strength has pushed the pair sharply lower this week, reversing the modest bounce of late June. The price had rebounded to the 50-day simply moving average (SMA), but in a classic downtrend move the sellers then drove it lower. Parity ($1.00) and then the $98.50 level come into view from here.
If a bounce materialises then it needs to recover $1.03 to have a fighting chance, bringing $1.0352 and then the 50-day SMA into play once more.
![EUR/USD chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/EURUSD_08072.png/jcr:content/renditions/original-size.webp)
GBP/USD’s brief rebound eases
The resignation of Boris Johnson as Prime Minister (although he is, at present, remaining as caretaker) allowed the pound to make some short-term headway against the dollar with GBP/USD. Indeed, we may have positive divergence on daily stochastics, with the price making a lower low this week but stochastics making a higher low. This could be a short-term bullish signal.
Bulls would like to see the price recover $1.208, which would then allow them to contemplate a move to $1.2251 and then the 50-day SMA (currently $1.234).
As noted earlier in the week, GBP/USD has reached fresh post-Covid-19 pandemic lows this week, and a fresh decline below Wednesday’s low of $1.1876 would mark a step towards the 2020 lows towards $1.15 and $1.1426.
![GBP/USD chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/GBPUSD_080722.png/jcr:content/renditions/original-size.webp)
Trendline resistance continues to cap AUD/USD gains
Compared to other US dollar pairs the decline with AUD/USD has been relatively gentle, although steady since the middle of June. The Reserve Bank of Australia's (RBA’s) greater hawkishness compared to the Bank of England (BoE) and the European Central Bank (ECB) has no doubt played a part here.
For now, trendline resistance from the mid-June high continues to hold back upside progress. Buyers would be looking for a move above $0.687 and then above $0.69 to break the downtrend.
Further losses target $0.667, and then on towards $0.64.
![AUD/USD chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/AUDUSD_080722.png/jcr:content/renditions/original-size.webp)
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