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The dollar is in the driving seat, with EUR/USD, GBP/USD and AUD/USD all pulling back. With trade and Brexit concerns continuing to dominate, there looks to be further downside to come.
EUR/USD has been continuing its decline, with the pair falling into the crucial $1.1526 support level. The ability to break below here is going to be key in determining our direction for the day.
As such, watch for an hourly close below this level for a bearish outlook. Otherwise, watch short-term intraday charts for potential bullish signals if we fail to break lower.
GBP/USD has dropped into a near three-week low, with the pair looking set for further downside from here.
The downtrend seen since the $1.3298 peak is likely to persist, even if we are looking at a retracement. We would need to see a break through $1.3117 to pave the way for further upside, with more losses on the cards until then.
AUD/USD is declining yet again, with the price having respected the 200-day simple moving average (SMA) on the four-hour chart time and time again. This latest move adds greater credence to the sell-off that started at the 76.4% retracement of $0.7312.
The wider downtrend remains intact, and thus further losses are expected. If we break through the $0.7239 mark, it would weaken the short-term bearish outlook. However, from a wider perspective, a bearish outlook remains unless we rally through $0.7382.
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