Dollar strength stifles gains in EUR/USD, GBP/USD and AUD/USD
Risk appetite remains subdued, as we have seen with the falls in EUR/USD, GBP/USD and AUD/USD.
EUR/USD falls below 200-day SMA
EUR/USD has slipped below the 200-day simple moving average (SMA) as the outlook for the European Union’s (EU’s) virus response continues to worsen.
Overall, the selling pressure continues to make itself felt, and opens the way to much more downside in the direction of $1.162, with a more bullish view requiring a move back above $1.194 to suggest a bigger recovery is in play.
GBP/USD still under pressure
Continued losses mean that, at best, GBP/USD needs to recover $1.385 to provide an indication that a low has formed.
Otherwise, the ongoing risk-off move now targets $1.35 as it moves below $1.37, key support from January. However, a short-term bounce after two days of sharp losses may simply attract more sellers.
The travails of risk assets continue to be amply demonstrated here, as AUD/USD drops to its lowest level since the beginning of February.
If it can hold here as it did then, a more bullish view may emerge, although it will require a recovery above $0.77 to cement this view. Further declines look likely with a loss of $0.755.
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