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EUR/USD, GBP/USD and AUD/USD looking at risk over short term

EUR/USD, GBP/USD and AUD/USD all shows signs of potential short-term weakness. However, will we see the bullish emphasis return before long?

EUR/USD heads lower after brief pause

EUR/USD is heading lower once again this morning, with the pair trading at the 61.8% retracement following a break below $1275.

That move below the prior swing low points towards further downside to come, with the 76.4% retracement level coming into view ($1.1236). The wider uptrend remains in play until we see a break below $1.1181. While further downside looks likely for the near term, there is still a good chance that the bulls will come back into play before long.

GBP/USD declines into Fibonacci support ahead of services PMI

GBP/USD has been under pressure this week, following a sharp decline in the construction and manufacturing purchasing managers index (PMI) surveys.

Today is the big one, with the services PMI figure expected to have a material impact on sterling this morning. The technical picture still remains somewhat optimistic for now, with the prior break through $1.2763 seemingly paving the way for a bullish phase to take shape. A break below $1.2506 would negate that bullish signal, yet it will be interesting to see how we react to this 76.4% Fibonacci retracement area. The low of the day also tallies up with the late-May low of $1.2559. As such, a break below this area of support would point towards a potential move into and below the $1.2506 lows. However, with the services PMI impending, watch out for how the pair reacts to this support zone.

AUD/USD rally looking at risk

AUD/USD has been climbing off the back of a sharp decline on Monday, with a record trade surplus figure overnight helping that recovery.

However, coming off the back of a substantial bout of upside at the back end of June, it looks likely that we will soon see this market continue lower once again. A rally through $0.7031 would negate such an idea, yet the current rally into the 61.8% looks likely to falter once more for a deeper retracement to come into play.

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