FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The dollar is in control as EUR/USD, GBP/USD, and AUD/USD look set for further declines.
EUR/USD declines show potential for further downside
EUR/USD has finally broken lower over the course of the week, with a drop into Fibonacci support at $1.1165. The ability to break through that 76.4% level will be key to determining whether we are going to continue this downward move.
The wider context does point towards further losses coming into play before long, yet it makes sense to look for a break below $1.1165 to signal impending downside as the pair moves towards the crucial $1.1135 swing low.
GBP/USD declines into support zone
These declines have taken the price into a confluence of support, with the $1.2779 low from February joined by a descending trendline dating back to January. This looks like a prime place for the pair to rebound and post some form of retracement. Whether that will come into fruition or not remains to be seen, but this area of support is certainly key for determining where we go from here.
AUD/USD continues to decline as elections loom
AUD/USD has seen a week of consistent declines, with the pair hitting a four-month low today. With the election taking place over the weekend, we are likely to see further volatility to come.
However, while we could see some form of retracement, a break through $0.6933 would be required to negate the bearish trend that is in play over the short term.
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