EUR/USD, GBP/USD and AUD/USD weakness expected before long
EUR/USD, GBP/USD and AUD/USD expected to break lower despite short-term gains.
EUR/USD decline likely to persist
EUR/USD has been on the slide over the past week, with a break below trendline support giving way to a phase of lower highs and lows. That remains in play despite the marginal gains seen in early trade today.
Given the shallow slant on this chart, there is a strong possibility that this is a temporary rise that will ultimately resolve in another leg lower for the pair. A break through $1.1123 would be required to negate this bearish outlook.
GBP/USD consolidates within recent pullback
GBP/USD has been easing lower over the course of the past week, with markets trying to ascertain whether we are actually going to avoid a no-deal by the end of the month. With an extension highly likely, we could see some upside come into play.
However, we are yet to see that occur and thus further downside remains a distinct possibility for now. The price has been respecting a short-term trendline support, and thus it is worth watching for a break below $1.2804 to signal the beginning of the next leg lower. A break through $1.295 would be required to bring the bullish outlook back into play.
AUD/USD on the rise from support level
AUD/USD weakness has taken the pair into the $0.6811 support level once more. That comes above the 50% retracement level, pointing towards the possibility of further downside.
However, for now there is a good chance we will see the pair move back towards trendline resistance. Despite the chance of short-term gains, we would need to see a break through the $0.6836 level to bring about a wider bullish picture once more.
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