EUR/USD, GBP/USD and AUD/USD decline into key support
EUR/USD, GBP/USD and AUD/USD continue their declines, with key support levels coming into play.
EUR/USD weakening after industrial production data
EUR/USD has been on the slide of late, with yesterday’s German factory orders decline being followed up by an equally disappointing industrial production release this morning. This helps build on a bearish narrative that has been in play since the pair started to reverse from a confluence of Fibonacci and trendline resistance at the turn of the year.
The drop below $1.0981 provides us with a bearish continuation signal, pointing towards further downside to come. As such, further losses are likely, with a break through the $1.1014 resistance level providing a signal that we are going to enter a wider retracement mode. Ultimately, we would need to break through $1.1096 to negate this bearish outlook and signal a wider recovery phase coming into play.
GBP/USD declines towards key support
GBP/USD has also been weakening, with the pair moving into fresh 2020 lows yesterday.
This decline has taken us into an important area of support, where a break below $1.2905 would bring about a wider bearish picture for the pair. For now, there is a chance we will rise moderately to retrace some of yesterdays weakness. We would need to break $1.307 to bring about a bullish signal. Until then, the big question is whether these declines are going to take us back below the $1.2905 support level.
AUD/USD heads back towards critical support level
AUD/USD is on the slide, with the pair heading lower again after a rebound into trendline resistance.
This decline points towards another challenge of the $0.6671 support level, which would provide a new ten-year low if broken. As such, a drop below that level would provide a signal that we are heading onto the next leg lower in this wider downtrend. With that in mind, keep an eye out for whether the price can break and sustain below that major support level.
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