EUR/USD, GBP/USD and AUD/USD expected to decline further
EUR/ USD, GBP/USD and AUD/USD continue to look bearish, with marginal gains for the likes of GBP/USD and AUD/USD doing little to negate the wider trend.
EUR/USD declines continue following break below key support
EUR/USD has been in bearish mode since Wednesday’s break below the critical $1.1167 support level. While we previously managed to break through the $1.1188 swing high, the wider bearish trend remains in play.
Ultimately it seems the 200-day simple moving average (SMA) provided sufficient resistance to halt those recent gains, with the pair moving back into a bearish phase in line with the wider bearish trend. There is a chance that this is just a retracement of that recent $1.1027-$1.1249 rally. Yet with the price already declining below the 61.8% level, further losses could see the 76.4% Fibonacci broken, bringing expectations of a further drop back towards $1.1027.
As such, the key will be whether we respect that 76.4% level or not ($1.1079). It will be a gauge of whether we start to turn higher or head into the August low of $1.1027.
GBP/USD continues to grind higher within downtrend
GBP/USD has managed to gain ground this week, with the Labour proposal to avert a no-deal Brexit at least raising some hope that a disorderly exit can be averted.
However, the wider downtrend remains intact despite this short-term rebound, with yesterday's rally being capped at the 76.4% retracement level ($1.2143). Ultimately, we will need to see a break through the $1.2182 level to negate this bearish trend. Until that happens, further downside looks likely.
AUD/USD turns lower after overnight rally
AUD/USD has been gaining ground overnight, with the pair seemingly retracing off the back of a previous decline below $0.6745.
While the gradual nature of this current intraday decline could mean an ultimate push higher, a bearish picture remains in play for the time being. This would reverse with a break higher, where a push through $0.6818 would bring a more bullish outlook.
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