EUR/USD, GBP/USD and AUD/USD turn lower once again
EUR/USD, GBP/USD and AUD/USD reverse lower, with equity markets turning lower to the benefit of the dollar.
EUR/USD turns back towards key support level
EUR/USD has been attempting to regain lost ground, following a decline into 1.0122 support yesterday. The ability to break through that level is key here, with price on an upwards retracement until that happens.
The wider bearish trend is very evident when looking at the likes of the daily and weekly chart. However, we are yet to see a bullish signal for the pair, thus signalling the potential for a bearish turn before long.
A break back below the 1.0122 support level would bring a fresh three-week low for the pair. Until that level is broken, there is a chance we see a move higher to post a deeper retracement of the 1.0368 selloff.
GBP/USD starts to weaken from Fibonacci resistance
GBP/USD has similarly been attempting to regain lost ground, with price rising back up into the 50% retracement and 100-simple moving average (SMA) confluence of resistance.
The recovery phase we have seen over the course of July looks like it could be over given the potential for a double top formation. A break back below the $1.20 handle would complete that bearish pattern, signalling the potential for a period of weakness to come.
To the upside, a push up through the $1.2277 level would be required to signal the potential for a bullish resurgence phase coming into play despite the long-term downtrend.
AUD/USD continues to reverse lower after rally into key resistance
AUD/USD managed to push sharply higher over the latter part of July, with the index ultimately rising into the 76.4% Fibonacci resistance level at 0.7141.
That level has provided a top as things stand, with the pair turning sharply lower this week. The wider bearish trend does signal the potential for a collapse from here.
However, a break below 0.6869 level would be needed to confirm that the recent bullish trend of higher lows is over. As such, while near-term downside does seem likely, a move back below that 0.6869 level would be required to bring expectations of a decline into the prior lows of 0.6681.
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