European currencies maintain declines and head into key support

European currencies lead the losses, with the AUD/USD challenging a key area of resistance after breaking from downtrend.

EUR/USD moves within touching distance of key support level

EUR/USD has continued its downtrend, following on from a rally into a confluence of resistance that includes an inside trendline and the 200-day simple moving average (SMA).

The wider bearish trend points towards the pair moving into and below the $1.1111 low. Should such a move occur, it would signal a continuation of that wider trend, with another upward retracement likely to come back into play before long.

EUR/USD chart Source: ProRealTime

EUR/USD chart Source: ProRealTime

GBP/USD downtrend continues as price moves towards key low

GBP/USD has continued its downtrend, with the post-resignation bounce proving fleeting at best. We are now within touching distance of the low of $1.2605 seen prior to Theresa May’s resignation.

A break below that level looks likely and this would signal a continuation of the downtrend in play over recent weeks. Further downside does seem likely, and only with a break through $1.2748 would the picture look anything other than bearish.

GBP/USD chart Source: ProRealTime

GBP/USD chart Source: ProRealTime

AUD/USD consolidation continues as price reaches key resistance

AUD/USD remains within a narrow band of consolidation following on from a rally into the $0.6936 swing high. That level represents the area of resistance that is being challenged today, with a break and close above there pointing towards further upside to come.

However, until that break occurs, there is a good chance we will see this consolidation phase persist.

AUD/USD chart Source: ProRealTime

AUD/USD chart Source: ProRealTime


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