EUR/USD, GBP/USD and AUD/USD trading around critical support
EUR/USD and AUD/USD continue their decline, with GBP/USD attempting to hold up around key support.
EUR/USD heads towards critical $1.1066 support level
EUR/USD managed to break the $1.1097 support level on Monday, ramping up expectations of a wider bearish picture coming back into play.
However, we have been waiting for a break below the $1.1066 level to bring confirmation of that bearish view. With the price heading into that level, watch for whether we can break it to gauge sentiment going forward.
GBP/USD manages to keep its head above water
GBP/USD just about managed to remain above the $1.2954 support level this week, maintaining a potential bullish resurgence story. Given the recent rise in rate-cut expectations, this weakness may not be over yet.
However, with the price having broken through the $1.3097 level on Friday, there is a potential for the pair to rebound once again and start building a base. A decline below $1.2954 would negate that and provide a continuation signal in this recent sell-off.
AUD/USD breaks critical $0.6838 support level
AUD/USD has followed up the $0.6849 break with a decline below the critical $0.6838 low from mid-December.
That breakdown provides us with a more confident bearish outlook, which signals a likely extension of the downtrend that has been in play for almost two years. As such, further downside looks likely, with any rebound likely to be a short-term retracement of the decline from $0.6934.
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