EUR/USD, GBP/USD and AUD/USD continue to turn lower

EUR/USD, GBP/USD and AUD/USD continue to weaken, with GBP/USD hitting a new two-year low.

EUR/USD falls towards key support level

EUR/USD declined below the $1.1238 support level yesterday, bringing about a more bearish picture for the pair.

The fall below that level provided us with a short-term double top formation, bringing further upside as a result. However, this has now taken us in towards the next hurdle of the $1.1193-$1.1181 zone. Those levels, if broken, would give way to a wider bearish picture for the pair as it negates the uptrend in play over the past two months. As such, watch out for whether we see such a break as a guide of where we go from here.

GBP/USD falls into two-year low

GBP/USD has seen sharp selling take hold this week, with the pair declining below the critical $1.2435 support level to create a new two-year low.

That points towards a wider bearish picture being in play here, with a lack of support levels signaling the possibility of a ramp up in selling. We have seen another leg lower in early trade, yet we are now starting to see the price rebound in response. With the UK consumer price index (CPI) released this morning, we are expecting to see volatility. Should we see any further upside, watch out for whether we see a break through the $1.242 swing high and $1.2435 historical low. Until that happens, the downtrend remains intact.

AUD/USD starts to turn lower after recent rally

AUD/USD has been drifting lower over the start of the week, coming off the back of a rally towards the $0.7048 resistance level.

This points towards the possibility of a bearish phase coming into play, with the short-term creation of lower highs crucial to such a move. With that in mind, a bearish picture remains in play unless we see a break through the $0.7021 swing high.

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