​EUR/USD, GBP/USD and AUD/USD declines likely to persist​

EUR/USD, GBP/USD and AUD/USD look set for further declines amid a week of dollar strength.

EUR/USD drops into new two-year low

EUR/USD has declined below the $1.0926 support level this week, with the price falling into the lowest level since May 2017. That continues the wider bearish trend, with further downside highly likely.

At some point we will retrace that wider decline from $1.1111, yet it will take a break through the swing high of $1.0967 to bring about a more bullish short-term picture.

GBP/USD slumps amid calls for future rate cut

GBP/USD has been on the slide this morning, with comments from the Bank of England (BoE) member Michael Saunders signalling that they could cut rates even if a no-deal Brexit were avoided.

That dovish outlook provides us with another leg lower within a week of wider downside. A break through $1.238 would bring about a more bullish picture, yet it looks like we will see further downside in the absence of such a break.

AUD/USD pausing amid recent decline

AUD/USD has been consolidating overnight, with the price pausing off the back of a sharp decline on Wednesday.

With the price falling towards the 76.4% retracement at $0.6736, the ability to break below that level could be key in signalling that this is a continuation of the wider downtrend rather and a bullish retracement. To the upside, a break through $0.6781 would be needed to start building a more bullish picture.

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