EUR/USD, GBP/USD and AUD/USD move lower in early trading
Losses continue in EUR/USD and AUD/USD, while cable is looking to push on after spiking in Monday’s session.
EUR/USD still in short-term downtrend
Yesterday saw EUR/USD remain under pressure, with the early move higher slowly giving way over the rest of the session.
Further declines below Friday’s low of $1.1016 confirm the downtrend and open the way to the October low of $1.0877. A rebound above $1.104 might help to revive a more bullish view, and might suggest the creation of a higher low on the daily chart.
GBP/USD eases back from Monday spike
Monday witnessed a rally in GBP/USD, as election news drove the price higher.
Some of those gains have been given back, and if further declines push the price below $1.277, then more downside seems likely. If the price can hold above the 50-hour simple moving average (SMA) of $1.2825, then a move back to $1.29 may result. The inability of yesterday’s bounce to hold above $1.286 is a negative development.
AUD/USD heads towards support
AUD/USD has shed some ground over the past two weeks, but it is rapidly heading towards horizontal support at $0.6828 and rising trendline support just below this.
This trendline has held since the beginning of the month, and may provide some support. A close below this and below the 50-day SMA ($0.6816) would be a potentially negative development. However, if the price can hold above it and create a higher low then a fresh push higher may result, targeting $0.693 and the November highs.
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