EUR/USD, GBP/USD and AUD/USD expected to decline further
EUR/USD, GBP/USD and AUD/USD continue to lose ground, with the EUR/USD double top leading the way lower.
EUR/USD drops below double top neckline
EUR/USD has seen sharp declines over the course of the week, with the pair ultimately breaking below the critical $1.1073 support level.
That completes a double top formation, pointing towards further downside to come. Given the wider long-term downturn seen throughout the past year, this bearish view tallies up with the primary trend. As such, bearish positions are favoured, with a break through the near-term swing high of $1.1093 needed to negate this view.
GBP/USD grinds lower, moving towards key support
GBP/USD has been moving lower for much of the week, in a move which comes off the back of a failed attempt to break through the $1.3012 peak from October.
That inability to break into a new high could be damning for the pair if we do break below the $1.2788 support level. However, for now we simply watch for a continuation of this weakness, with a break through $1.2917 required to bring about a more bullish intraday picture.
AUD/USD showing signs of weakness at key resistance zone
AUD/USD has been consolidating over much of the week, with the price having rallied into a key crossroads of ascending and descending trendline resistance.
While the pair is moving higher this morning, there is a good chance that this is a precursor to further downside. As such, further weakness looks likely unless we see a break through the $0.6928 peak from Tuesday.
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