EUR/USD, GBP/USD and AUD/USD support levels to dictate state of play
EUR/USD, GBP/USD and AUD/USD looks set for short-term downside, with key support being challenged.
EUR/USD back at key support as we await next big move
EUR/USD has been consolidating around the 61.8% Fibonacci retracement level, with the pair trading back at that same $1.1269 level this morning. The ability to break below that level will be key for the day, with a tightening Bollinger band pointing towards a potential jump in volatility.
Conversely, a rise through the $1.1312 swing high would bring about a more bullish picture for the pair. Ultimately, this sell-off looks like a retracement within an uptrend that kicked off throughout June. The sell-off, if we decline below the $1.1269 support level, would point towards a move into the $1.1235 level (76.4%) before the bulls start to come back into play.
GBP/USD consolidation looking likely to bring further downside
GBP/USD has been consolidating since Tuesday’s decline, with the pair essentially trading sideways through yesterday’s quiet Independence Day session.
The signal we are looking for to bring about a new bearish signal is a break below $1.2559. Should that occur, we would be looking for whether price manages will decline into the $1.2506 level or not. A break below that wider support level would signal the beginning of a new sell-off, negating the bullish picture that came with a rally through $1.2763.
AUD/USD turning lower once more after recent rally
AUD/USD is breaking below the notable $0.7015 support level this morning, following on from a pullback yesterday.
The ability to post an hourly close below $0.7015 is key to signaling a bearish picture for today at least. A break below $0.6956 would be required to bring about a wider bearish picture, yet the decline we are currently seeing points towards a wider retracement of that $0.6956-$0.7048 rally coming into play.
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