FX levels to watch: EUR/USD, GBP/USD and AUD/USD
EUR/USD, GBP/USD and AUD/USD have all been losing ground this week. However, with wider bullish trends in play, will we see this decline persist to break key support levels?
EUR/USD breaks below key support levels
EUR/USD has been continuing its descent as we move through the week, with a break below $1.1434 and $1.1406 negating the previous creation of higher lows. That points towards further downside, even if we are in retracement mode.
Watch out for the 61.8% or 76.4% Fibonacci levels to hold up as support, with a break below them pointing towards a move into the next support level.
GBP/USD respecting Fibonacci support
GBP/USD sold off into the 76.4% Fibonacci support level over the past week, with the pair starting to find some buyers from that $1.2922 level.
This points towards a likely move higher to continue the bullish trend in play over the past month. A break below $1.2930 would signify a wider downturn for the pair.
AUD/USD drops after dovish RBA message
AUD/USD has been moving sharply lower in the wake of dovish comments from the Reserve Bank of Australia (RBA) governor Philip Lowe who specified that the next rate move may be lower rather than higher.
This has seen the pair move into the 76.4% support level, with the pair needing to turn higher in the near future to avoid a wider bearish picture coming into play. A break below $0.7076 would negate the uptrend in play throughout January. Meanwhile, watch to see if the pair can start finding buyers at this Fibonacci support level.
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