EUR/USD and GBP/USD tumble, while AUD/USD gains look likely to reverse
EUR/USD and GBP/USD are on the slide, with both markets hitting multi-year lows. Meanwhile, AUD/USD gains could be lost amid a wider downtrend.
EUR/USD hits two-year low
EUR/USD has been on the slide, as dollar strength helps drive the pair into the lowest level since 2017. The hourly chart highlights a clear intraday downtrend that is likely to come back into play, despite a bounce this morning.
As a result, bearish positions are preferred, with a break through $1.0975 required to bring about a more bullish outlook.
GBP/USD slumps amid Brexit fears
GBP/USD has seen selling ramp up in anticipation of future volatility, with the prospect of a no-deal Brexit raising fears for sterling bulls. There is plenty of uncertainty ahead, with today likely to be dominated by a vote that could see anti no-deal Brexit MPs wrestle control of the exit process away from the prime minister. Should that pass, we are looking at a likely October general election that will dictate whether we see a no-deal Brexit or not.
For this pair, we are likely to see further downside to come, with the losses seen today taking us into the lowest level since October 2016. Therefore, keep an eye out for this intraday picture, where further losses are expected unless the price breaks through the $1.2077 consolidation high seen yesterday.
AUD/USD rebounds after RBA lowers rate cut hopes
AUD/USD has been on the rise this morning, with the decision reached by the Reserve Bank of Australia (RBA) to maintain rates at 1%. That decision also reduced market expectations of an October cut, to the benefit of the Australian dollar. However, the rebound we have seen in this pair has taken us into a key resistance area, with trendline resistance coming into play.
Crucially, given the recent creation of lower highs, there is a good chance we will turn lower from here, with a rise through $0.6729 required to bring about a new bullish outlook for the short term.
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