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EUR/USD and GBP/USD falter but AUD/USD holds its ground

Pessimism has hit EUR/USD and GBP/USD, but AUD/USD has managed to hold its ground despite growing risk aversion.

EUR/USD selling resumes

Euro bears remain firmly in control, as the EUR/USD price rebounds from an overnight low but begins to decline once more – the overnight bounce stalled at $1.0965, and from here we may see a push below $1.094 and then down to $1.087.

A close above $1.10 would be needed to revive a more bullish view, and would target the 50-day simple moving average (SMA) at $1.1053.

GBP/USD drops below 50-day MA

The GBP/USD price broke below the 50-day SMA ($1.2257) yesterday, and looks set to continue its decline towards the August lows at $1.20.

The failure of the push above $1.236 last week confirmed the preponderance of selling pressure, and would suggest that any sustainable rally requires a move back above $1.24.

AUD/USD holds recent gains

The AUD/USD rally from the lows of last week suffered a bout of volatility yesterday, but arguably it is still intact, having seen support develop around $0.673.

If this continues to hold then a push towards $0.677 comes into play, followed up by the $0.6828 level. A move below $0.672 begins to reverse the bullish impression and would put last week’s lows at $0.677 into play.

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