EUR/USD, GBP/USD and AUD/USD all under pressure once more
US dollar strength continues to be felt across forex markets, driving down key pairs.
EUR/USD falls to six-week low
EUR/USD losses have slowed, but it remains below the 50-day simple moving average (SMA), at $1.177.
However, with the overall trend higher still intact, we watch for any near-term recovery above $1.178. Further declines could bring the $1.1425 level into play once again.
GBP/USD falls below 200-day SMA
There seems no stopping the decline for GBP/USD, as the reversal from the 50-day SMA at $1.3011 goes on.
With the price now below the 100-day and 200-day SMA the sellers are firmly in control, and now target $1.25. Intraday rallies could continue to be selling opportunities, with a more bullish view requiring a recovery above $1.28.
AUD/USD correction goes on
The losses continue for the AUD/USD, taking the pair to its lowest level since mid-August.
Like EUR/USD, this looks more like a pullback in an uptrend rather than something more serious. As a result, while further losses may push the pair down towards the 100-day SMA ($0.6997), we watch for a recovery in due course. A rally back above $0.72 would provide that trigger, and put the pair on course to target $0.74.
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