FX levels to watch – EUR/USD, GBP/USD and AUD/USD

The dollar remains in charge, with EUR/USD, GBP/USD and AUD/USD all tumbling to set up a potentially protracted period of downside.

EUR/USD continues its decline

EUR/USD has been following up on the breakdown through $1.2154 this morning, with European Central Bank (ECB) president, Mario Draghi, helping force the pair below that crucial support level.

This break points towards further downside coming into play, with the pair seemingly in retracement mode of the $1.1554-$1.2556 rally. The next key support level comes at the 50% retracement of that rally ($1.2055), with the 61.8% level ($1.1936) likely to also figure over the coming period. Follow the intraday creation of lower highs for a signal of whether this short-term downtrend is likely to continue.

GBP/USD continues decline after key break

GBP/USD is continuing the decline in place over the past ten days, with the fall below $1.3966 paving the way for further downside from here.

Yesterday’s fleeting fall below the $1.3917 swing low is now being followed up, and further losses seem likely. With that in mind, a bearish short-term outlook remains in play unless we break back up above $1.3998.

AUD/USD falling into critical support level

AUD/USD is also in decline, with the price consistently on the slide, taking us ever closer to the crucial $0.7501 level. That support level represents a critical point, which, if broken, would complete a double top formation on the weekly timeframe.

It would also provide the first long-term lower low since 2016. As such, while further downside is likely from here, keep an eye out for a possible break or rebound at $0.7501 to signal the directional bias.

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