FX levels to watch: EUR/USD, GBP/USD and AUD/USD
EUR/USD, GBP/USD and AUD/USD are all in decline, yet with key support ahead, we need to see those broken for further downside to come into play.
EUR/USD falls into Fibonacci support
EUR/USD has dropped into the 76.4% retracement amid a sell-off that has brought us back into a crucial area of support. The wider trend highlights the creation of higher highs and higher lows, thus pointing towards a possible bullish reversal in the near future.
With an ascending trendline further down, there is a chance we could see another leg lower to bring that support line into play. However, until we break below $1.1301, there is a good chance that the bulls will soon return for EUR/USD. Watch for a break through the most recent swing high as a bullish confirmation signal (currently $1.1410).
GBP/USD continues to decline from 76.4% resistance
GBP/USD has been weakening consistently since hitting the 76.4% resistance level of $1.30. Whether this is simply another short-term retracement or the beginning of a wider bearish shift for the pair remains to be seen.
However, with a minimal rebound this morning being sold into straight away, it looks likely we will continue to tumble in the coming days.
AUD/USD at risk of another break lower
AUD/USD has been on the rise throughout the beginning of 2019, although the past week has seen the pair drift lower in what could be a topping pattern. The wider trend in AUD/USD is bearish, and thus until we break through the $7393 level, there is a chance that we will see this market turn over once more.
Crucially, it is worth watching the $7145 level as a guide to whether we are set for a protracted move lower or not. An hourly close below that level would bring about a likely period of downside for the pair.
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