Dollar strength bears down on EUR/USD, GBP/USD and AUD/USD
A continued rise in the greenback has seen further modest losses for EUR/USD, GBP/USD and AUD/USD.
EUR/USD begins new week with declines
The EUR/USD continues its retreat from the highs seen last week, although for now the losses are small compared to the gains since early October.
Further declines below the $1.213 level are likely to see this pullback gather pace, targeting the rising 50-day simple moving average (SMA) at $1.2033. The short-term upward move of December appears to be over, but the longer-term rally is still very much in place.
GBP/USD hits one-week low
Here too the price of GBP/USD has broken below short-term support, and further declines below $1.347 are likely to reinforce the negative view for the time being.
Again, however, the longer-term uptrend is intact, with previous weakness in December finding support at the 50-day SMA ($1.3357). A move back above $1.357 provides evidence that the buyers have once again taken control.
AUD/USD continues short-term weakness
A resurgent US dollar is making itself felt here as well, with the AUD/USD seeing its most substantial decline for weeks.
A continued move lower targets the $0.75 region, where a bounce materialised in mid-December, and then close behind this is the rising 50-day SMA at $0.7444. A move back above $0.775 could restore the advantage to the buyers.
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