Dollar strength continues to weaken EUR/USD, GBP/USD and AUD/USD
EUR/USD, GBP/USD and AUD/USD head lower, with the dollar looking to continue its ascent.
EUR/USD drops back into key support
EUR/USD has continued to head lower following the drop into and below $1.1752 support on Monday. That breakdown did signal a likely move back into $1.1704 support.
Now, the key question is whether we see that $1.1704 level break, with such a move bringing an increased expectation of further downside from here. As such, with the pair at a key crossroads, whether or not we break this level will be key in determining the outlook going forward.
GBP/USD breaks support to bring risk of further weakness
GBP/USD has slumped back below the $1.3843 support level overnight, bringing an end to the trend of higher lows that played out over the final week of July.
That break does provide us with expectations of further downside from here, with a rise through $1.3872 required to stabilise things from an intraday perspective.
AUD/USD rolling over with pair likely to break lower
AUD/USD looks at risk of a strong move lower, with the recent period of consolidation at risk of coming to an end given the break below trendline support.
The drop below $0.7329 support brings expectations of another slump for the pair, with yesterday’s rise bringing about a short-term pullback before it heads lower once again. A break below $0.7316 brings about another fresh signal of impending weakness as we look to finally exit the consolidation phase.
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