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EUR/USD, GBP/USD and AUD/USD expected to weaken further

EUR/USD, GBP/USD and AUD/USD show signs of likely impending weakness, with the dollar expected to gain ground.

EUR/USD declines look set to continue

EUR/USD is suffering as the return of haven demand drives gains for the dollar and yen. This means EUR/USD is certainly at risk given the recent underperformance of the euro in comparison to most of the main currencies.

The shallow retracement seen overnight could provide us with another good entry, with a break below $1.082 acting as a sell signal. Should that break occur, the close proximity of the overnight peak of $1.0866 allows for relatively tight stops. Essentially, if we do break below $1.082, then the bearish short-term outlook would hold until we break the prior swing high of $1.0866.

GBP/USD continues to consolidate despite dollar demand

GBP/USD highlights the relative underperformance of the euro, with the pound holding up well against the dollar. With the price back at a short-term trendline support, we will be watching to see if any breakdown occurs.

Ultimately, we need to see a move below the $1.2244 level to bring about a wider reversal signal for this pair. Conversely, a rise through $1.2475 would be required to bring about a bullish continuation signal.

AUD/USD rise provides Fibonacci shorting opportunity

AUD/USD has regained ground overnight, with the price rising back into the 61.8% Fibonacci retracement level. The recent creation of lower highs and lower lows provides us with a bearish outlook for this pair, with sell positions preferred unless the price breaks through the $0.6119 swing high.

As such, while we could see a deeper retracement towards the 76.4% Fibonacci level, a bearish outlook is in play unless we see that $0.6119 level broken.

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