EUR/USD and GBP/USD lead the way lower, as AUD/USD starts to follow
EUR/USD and GBP/USD are leading the losses, with AUD/USD showing tentative signs of a bearish reversal.
EUR/USD heads towards key support level
EUR/USD failed to break through the $1.1285 swing high yesterday, with the pair turning lower in response.
The breakout from this $1.1238-$1.1286 zone will tell us a lot about where the pair is heading, with the current sell-off heading back towards the lower end of that zone. As such, further downside looks likely, yet we could continue to consolidate if that $1.1238 support level is not broken. If it is, then there is a good chance we will head back towards the critical $1.1193 lows.
GBP/USD breaks key support, as wider downtrend comes back into play
GBP/USD declined through the $1.2509 support level this morning, bringing about a sharp bout of selling for the pair.
This takes us back on course to challenge the critical $1.2435 support level once more. Should that occur, we would post a new two-year low and decline into an area with very little support of note. With that in mind, watch out for further downside, with the current break below the 76.4% Fibonacci retracement pointing towards a rising likeliness of a move into $1.2439.
AUD/USD rolling over after recent gains
AUD/USD is somewhat delayed in its weakness, with a dovish Reserve Bank of Australia (RBA) statement doing little to reverse this pair.
However, with the price having moved into the $0.7048 resistance level, it looks like we are now beginning to show signs of a bearish reversal. Watch for a break through the $0.7026 swing low as a signal of impending downside and a breakout from the intraday uptrend that has dominated the past week.
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