EUR/USD, GBP/USD and AUD/USD break key support
EUR/USD, GBP/USD and AUD/USD break crucial long-term support levels, with the dollar finding favour.
EUR/USD continues to trend lower
EUR/USD has been selling off sharply over recent weeks, with the decline below $1.0981 providing the latest bearish signal within a wider downtrend.
With that in mind, there is plenty of reasoning behind the notion that we are due further downside for the pair. The hourly chart highlights a clear short-term downtrend, which is likely to hold unless we break the $1.0976 swing high. Should that break occur, we would simply look at a retracement of the wider sell-off from $1.1094. With no such break having occurred, further downside looks likely from here as we continue the ongoing downtrend.
GBP/USD breaks below crucial support level
GBP/USD is also weakening, with the pair breaking below the $1.2905 level on Friday. That appears to set us up for a period of downside from here as it negates the uptrend seen throughout recent months.
The bulls are likely to come back into play before too long, yet the four-hour chart below highlights this recent bearish breakdown. With that in mind, further downside looks likely, with a rise through $1.2959 required to start building some form of stability or bullish pressure.
AUD/USD rebounding from critical $0.6671 support
AUD/USD managed to fleetingly break below the $0.6671 support level on Friday, providing us with the lowest level since 2009. That breakdown failed to hold, and we are now starting to see the bulls come back into play.
Obvious associations between Australia and the current Chinese coronavirus continue to hold back the AUD, and thus it is likely we will see further weakness to come. As such, this current rebound looks like a precursor to another leg lower, with a break through $0.6774 required to negate this bearish outlook. Until then, it looks likely we will soon return to that huge multi-year support level of $0.6671 to potentially kick-start the next leg lower for this pair.
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