EUR/USD, GBP/USD and AUD/USD slump as the dollar dominance returns
EUR/USD, GBP/USD and AUD/USD head sharply lower, with the wider bearish trends coming back into play.
EUR/USD breaks lower, heralding the potential return of dollar dominance
EUR/USD has taken another major step lower this week, with the price collapsing through the key $1.0122 support level to draw a line under the recovery seen throughout much of July and early-August.
Ultimately, if you believe markets are due another leg lower, then by proxy, we should also see the dollar push into another period of dominance too. With that in mind, further downside seems likely, with any short-term upside moves deemed a selling opportunity unless the price break the latest swing high (currently $1.0203).
GBP/USD breaks support, with further downside likely
GBP/USD has also broken through key support, with the move below $1.2003 bringing about the completion of a double top formation.
The wider downtrend does highlight the potential for another bout of weakness in the event that the wider risk-off sentiment returns. With the price continuing to decline, sentiment has clearly taken a turn for the worse. As such, a bearish outlook holds here, with a move up through the latest swing-high of $1.2142 required to bring about a more positive view.
AUD/USD continues its decline as it heads towards major support level
AUD/USD continues its downward trajectory this morning, with the pair moving ever closer to the key $0.6869 swing-low.
That support level is going to be crucial here, with a move through that point ending the recent recovery phase to bring confirmation that the wider bearish trend is back in play. As such, watch for the reaction to $0.6869, with a break below that point bringing expectations of further weakness for the pair.
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