Weakness expected for EUR/USD, GBP/USD and AUD/USD
Dollar strength continues to drive EUR/USD, GBP/USD and AUD/USD, with all three expected to fall further.
EUR/USD downtrend likely to continue
EUR/USD saw sharp losses yesterday, as the downtrend seen throughout the past nine days continues. The rise seen overnight has already been erased, pointing towards a likely continuation of this downtrend.
With that in mind, a break below $1.0955 would signal the beginning of another bearish phase. Until then, the consolidation/retracement can continue. This wider bearish trend remains in play unless we see a rise through $1.1189.
GBP/USD downtrend remains in play as sellers step in again
GBP/USD upside seen yesterday appears to have short-lived, with the pair moving lower yet again today. The key to seeing another leg lower is whether we see a break below the $1.2002 support level.
We are ultimately expecting to see that breakdown occur, yet will need to see a break below the prior low to confirm the end of this retracement phase.
AUD/USD sell-off continues after rising towards trendline
AUD/USD has dropped into another multi-year low today, with yesterday’s gains proving short-lived. The dollar gains we have been seeing are unlikely to reverse yet, and thus we look set for further downside from here.
A bearish outlook thus remains in play, with a break through trendline and $0.6029 resistance required to negate this view.
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