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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD, and AUD/USD decline towards key support

EUR/USD, GBP/USD, and AUD/USD are all declining amid a late resurgence for the dollar last week.

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EUR/USD reverses lower after recent gains

EUR/USD sold off sharply at the end of last week, with the pair hitting the lowest level in more than a week. Given the wider breakout from a long-term wedge formation, this move looks like a retracement before we turn higher once more.

As such, watch out for the Fibonacci retracement levels as potential turning points. We are currently trading at the 61.8% level, yet a decline below here would point towards a possible move into $1.1171 (76.4%) support.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD declines towards crucial support zone

GBP/USD has continued its declines following a breakdown below $1.2653 support. That level completed a double top formation, which has taken us into an important area of support.

With trendline and horizontal ($1.2559) support below, a break below that point would point towards a continuation of the wider downtrend for a move towards the 2019 low of $1.2435. As such, the GBP/USD bias will be dictated by the reaction of this market to this upcoming support zone.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD hit notable support level after recent declines

AUD/USD has continued its declines, with the pair hitting the lowest level in five months. The outlook for the day will depend on the reaction to this $0.6865 support level.

The hourly chart shows the move back towards trendline resistance, raising the likeliness of a further breakdown. To the upside, we would need to see a break through the $0.6906 swing high to bring about a more bullish view. Alternately, watch for a break back below $0.6865 to bring about a bearish continuation signal.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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