EUR/USD, GBP/USD and AUD/USD on the back foot
EUR/USD, GBP/USD and AUD/USD head lower, with US dollar strength permeating throughout the FX markets.
EUR/USD continues to weaken following breakdown
EUR/USD has been consistently on the back foot this week, with the recent break below $1.1066 providing us with a wider bearish signal for the pair. That points towards the long-term downtrend coming back into play once more, signalling a likely break below $1.0981 before long.
With that in mind, it makes sense to watch out for further downside from here. In the short-term, the ability to remain below $1.1037 provides a signal that we are going to continue the very tight, consistent selling that has been taking hold over the past six days. However, should that break, we would be looking at a retracement of the decline from $1.1108. Only with a break through that level would we start looking for a more protracted period of upside.
GBP/USD declines towards crucial breakdown zone
Once again, we are looking at a deep retracement for GBP/USD, with the price falling back down to trendline and horizontal support.
A break through the $1.2954-$1.2962 support zone would negate the wider bullish trend that has been in play of late. However, until that happens, there s still a chance we will see another rebound following a deep retracement.
AUD/USD headline lower again after brief respite
AUD/USD is on the back foot once more, following a brief period of upside overnight. The wider bearish trend has been brought back into play following the completion of a head and shoulders formation last week.
We have been heading lower since, and it looks likely we will see further downside to come. Watch for a break below $0.6737 to confirm the end of this recent retracement and beginning of the next leg lower.
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