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EUR/USD, GBP/USD and AUD/USD decline towards key support levels

EUR/USD, GBP/USD and AUD/USD continue to lose ground, yet key support levels remain unbroken.

EUR/USD consolidating around key support level

The EUR/USD declines have slowed markedly this week, with the recent decline taking the pair within close proximity to the hugely significant $1.1181 support level.

A break below that level would activate a wider bearish picture to tally up with the weakness seen in the short term. However, until that level is broken, there is a chance we could see the pair gain ground. In particular, look out for $1.1219 and $1.1234 as the initial signals that we could begin bottoming out.

GBP/USD continues to trend lower

GBP/USD has been experiencing a more consistent downtrend this week, with the declines taking price back towards the crucial $1.2435 support level. This comes off the back of a drop below the $1.2506 level, signifying a continuation of the downtrend evident throughout recent months.

Ultimately, should we manage to break below $1.2435, it would heighten the chance of a significant drop for the pair, as the price breaks into a new two-year low. To the upside, we would need to see a rally through $1.2540 to bring about a more bullish short-term view.

AUD/USD continues to decline after drop below key support

AUD/USD has been in freefall this week, after a rally into trendline resistance was followed up by a drop below the critical $0.6956 support level. That pointed towards a topping off in the pair, with the price on the slide ever since.

The rally through $0.7021 signals a potential bullish picture coming into play, yet much of that has been undone by fading optimism over US-China talks, and the strong US payrolls number. However, there is still a chance we are in retracement mode, and it is worth watching our response to the 61.8% Fibonacci support level, and subsequent 76.4% level ($0.6882). Looking at the short-term trend, this bearish picture remains in play unless the price breaks through $0.6933.

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