EUR/USD, GBP/USD, and AUD/USD continue their downtrend as the dollar dominates
EUR/USD, GBP/USD, and AUD/USD continue their bearish trajectory, with the dollar remaining in the driving seat.
EUR/USD sell-off continues, as pair touches new 20-year low
EUR/USD continues to be dominated by dollar strength, as traders favour haven assets in the face of recessionary fears and rising interest rates. Yesterday’s news of a gas leak in the Nord Stream pipelines does little to raise confidence as we head into the winter, with many speculating that it is an act of sabotage aimed at making life even more difficult for Europe.
Whether stockpiles are sufficient remains to be seen. The EUR/USD pair has been on the back foot once again since that news, with the pair falling into a 20-year low below the $0.955 support level. That points towards a likely bearish continuation from here, with both the short and long-term outlook continuing to tally up.
As such, bearish positions are favoured unless the price rises through the latest swing-high of $0.9671. Should such a upside break occur, we would be looking at a wider move back towards trendline resistance.
GBP/USD finds support after decline into key support
GBP/USD has seen plenty of turmoil over the course of the past week, but the collapse seen in the wake of the recent Kwasi Kwarteng mini-budget has noticeably calmed down for now. While we have seen half of that 8% decline recovered, there is still significant risk of further downside as highlighted by the turn lower seen yesterday.
That decline took the price into the key near-term support level of $1.0631, with a decline through there signalling a potential bearish continuation move. Instead, we have seen the price hold up for now.
As such, the ability to break below that 1.0631 level will be key in determining whether the bears are back in charge or not. Until then, there is a chance that we see the price grind higher.
AUD/USD tumbles into two-year low
AUD/USD has maintained its downward trajectory, with the pair falling into a fresh two-year low as risk aversion drives the dollar higher once again.
The four-hour chart highlights the speed of this collapse, with recovery phases coming few and far between over the past week. A bearish view thus remains in play unless we see a move up through the $0.6513 swing-high established yesterday.
Until then, near-term upside is there to be sold into, with retracements providing potential opportunities for bears to come back into play. Should we see that $0.6513 level broken, it would signal a potential wider retracement of the selloff from $0.6916 coming into play.
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