EUR/USD, GBP/USD and AUD/USD head lower as dollar bulls continue to dominate
EUR/USD, GBP/USD and AUD/USD head lower as the dollar continues to dominate.
EUR/USD fades short term bounce
EUR/USD has once again proven its credentials as a pair worth shorting, with yesterday’s attempt at recovering lost ground proving short lived. The ongoing risk-off momentum permeating through financial markets does provide the basis for further dollar strength, with this week’s Federal Open Market Committee (FOMC) meeting serving to highlight the ongoing monetary tightening that should help drive this pair lower still.
As things stand, the price looks to be on the cusp of a fresh 19-year low, with the move through $0.9808 required to bring about another leg lower. To the upside, any bounce would be deemed a short-term retracement unless we see the price rise through the $1.005 resistance level.
GBP/USD heads into support after brief respite
GBP/USD similarly looks to be heading for a fresh long-term low, with the pair on the cusp of yet another 37-year low if $1.1211 is taken out. The ability to do so will be key today, with such a break bringing the beginning of another leg lower.
Should such a move take hold, short-term bearish positions are favoured once again, with a rise through the $1.1364 level required to end the intraday bearish trend and signal the beginning of another wider retracement coming into play.
AUD/USD turning lower after rally into resistance
AUD/USD has been attempting to regain ground after the recent decline into a two-year low. That break through $0.6681 support was crucial in signalling the potential for further downside. However, with the price regaining ground earlier in the week, we have seen that prior support turn into resistance.
With a wider bearish trend in play, and the price turning lower from a key long-term resistance level, it makes sense to expect further downside from here. A rise through the $0.6747 level would be required to negate this bearish short-term view.
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