EUR/USD, GBP/USD and AUD/USD all struggle in early trading
A bout of risk aversion has hit FX markets, with the US dollar strengthening once again.
EUR/USD turns down in early trading
The EUR/USD bounce of earlier in the week has been reversed and now a move to the $1.1186 level seems likely.
This would then open the way towards further downside. The relatively weak bounce in momentum indicators such as stochastics points towards a resumption of the downtrend in due course.
GBP/USD still unable to bounce
After a small recovery yesterday the GBP/USD price is under pressure once again.
We look for a push back towards $1.316, as the downward move of the past month reasserts itself. A revival above $1.33 still looks a distant prospect for now, but would be needed to provide a more short-term bullish view.
AUD/USD bounce stalls
Having rallied along with equity markets after a bruising decline in November, the AUD/USD price has stalled around $0.7185.
A small reversal for now has yet to signal a return to the downtrend, but a failure to revive the move and rally above $0.72 would send a bearish message. A drop below $0.71 would open the way to further downside.
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