EUR/USD, GBP/USD and AUD/USD all fall back
Risk appetite is on the wane, as the early losses for the euro, sterling and Aussie against the dollar demonstrate.
EUR/USD drops back from Monday’s high
The EUR/USD price recovered the losses of Friday and continues to hold above the 200-day simple moving average (SMA) at $1.1853, confounding the sellers, but now it needs to push on back to, and then above, $1.1987, the highs for the month so far.
Even then a move above $1.20 could soon run into trendline resistance from the January peak. Sellers will want to drive the price back below $1.188 as a first step to opening the path to further downside.
GBP/USD pushes into support zone
It is now up to the buyers to hold the price of GBP/USD above the $1.38 support level, after the small bounce yesterday that saw the price hold the 50-day SMA.
A reversal here that then retakes $1.40 helps to revive the bullish view, while a drop below $1.375 would put the sellers back in control for the time being.
AUD/USD heads lower
Like many risk assets AUD/USD has turned neutral of late, unable to hold recent highs.
The next lines of possible support are $0.7621 and $0.7563, the former being the early-March low, and then on to the January low. So far there is little sign of a reversal that can recover last week’s highs and help to put the price back on an upward path.
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