FX levels to watch: EUR/USD, GBP/USD and AUD/USD
Dollar strength remains a key driver for markets, with EUR/USD, GBP/USD and AUD/USD weakness looking set to continue for now.
EUR/USD declines further amid wider downtrend
EUR/USD has been selling off once more this week, with the recent rally into the 61.8% providing us with a bearish turn. That move conforms with the wider trend of lower highs and lows in place through 2019 thus far. This points towards a break below $1.1234 soon enough, with the continued creation of lower intraday highs providing us with a bearish outlook.
With that in mind, further downside looks likely, with a break through $1.1343 required to bring a more bullish view. Meanwhile, with the failure to break below $1.1289 this morning, there is a good chance we are going to post a deeper short-term rebound should we break through $1.131.
GBP/USD sell-off slows, with key resistance coming into play
GBP/USD has been regaining some composure overnight, as the sell-off slows to take the price back towards trendline resistance.
While that could be the defining factor which sends price lower once more, the key level to watch here is $1.3180, with a bearish outlook remaining in place unless we see a break through that swing high.
AUD/USD breaks below critical support level
AUD/USD fell below $0.7054 overnight, with a disappointing gross domestic product (GDP) figure driving the Australian dollar lower across the board.
Looking at the four-hour chart below, it is clear that we have broken out of a topping pattern, with further downside expected from here. That conforms with the wider bearish trend in place for the pair. As such, while we could see some form of short-term rebound at some point, a bearish outlook is in play unless we break through $0.7092.
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