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EUR/USD, GBP/USD and AUD/USD weaken on dollar demand

EUR/USD, GBP/USD and AUD/USD come under pressure as risk-off sentiment helps drive dollar demand.

​EUR/USD showing signs of potential impending weakness

EUR/USD is turning lower in early trade today, with the pair looking at risk of a protracted move lower in the coming days. With markets weakening thanks to prospective US sanctions on Chinese individuals, we are seeing dollar demand creeping back in here.

The potential head and shoulders formation highlights that possible weakness, with a break below the $1.2101 level required to bring a wider bearish picture into play. Should that occur, we would be looking at a likely retracement of the $1.1924-$1.2177 rally.

GBP/USD slumps into key support

GBP/USD has seen sharp losses at the start of the week, with the pair moving back into the key $1.3287 support level. A break below that point would negate the recent uptrend, pointing towards a more bearish phase for the pair.

Given the growing fear surrounding Brexit, it makes sense that the pound could come under pressure in the absence of a deal. Thus traders should keep an eye out for whether we break or rebound from $1.3287 as a gauge of where we go from here.

AUD/USD starts to roll over after recent gains

AUD/USD is weakening in early trade today, with price falling below the $0.741 swing low after the European open. With markets coming under pressure, we are also seeing other risk assets come under pressure.

That decline through $0.741 support points towards a wider retracement coming into play, with a pullback into the $0.7365-$0.7381 support looking a distinct possibility. The wider uptrend does remain intact unless we see a break below $0.7339. However, for the near term it looks likely we will see further downside as we provide a retracement of the wider uptrend.

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