EUR/USD, GBP/USD and AUD/USD continue lose ground
EUR/USD, GBP/USD and AUD/USD all grind lower, although it is the Australian dollar that looks at most risk of sharp declines.
EUR/USD consolidating after recent gains
EUR/USD pulled back to the $1.1053 support level yesterday, raising questions over the longevity of this current rally.
That failure to continue creating intraday higher lows could mean a breakdown from here, although it makes sense to await a break back below that level first to provide the bearish signal. Until then, this short-term uptrend still remains in play.
GBP/USD consolidation expected to bring further upside
GBP/USD has also been consolidating over the short term, with the pair easing back after breaching the $1.2976 resistance level. That break points towards a likely upward breakout before long.
However, for now there is a possibility that we see further short-term losses with a break through $1.30 required to bring about expectations of a bullish surge.
AUD/USD looks set for further declines
AUD/USD has broken below the key $0.6786 support level overnight, completing a pattern which looks a lot like a head and shoulders formation
This creation of lower highs and lows signals a high likeliness of further downside to come. Therefore, a bearish outlook is in play, with a break through the $0.6814 level required to negate this view.
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