Sterling declines continue as UK uncertainty continues
EUR/USD, GBP/USD and AUD/USD are expected to move lower today, in a continuation of the wider trends of recent weeks.
EUR/USD continue to decline after rally into deep retracement
EUR/USD has been declining after a deep retracement into trendline and the 200-simple moving average (SMA) resistance. The wider downtrend remains in play and points towards a likely move back into the lows around $1.1111.
With the pair oversold, there is a chance of a rebound, yet further downside does look likely as the pair continues the bearish pattern. A break through $1.1264 would be required to negate the wider downtrend.
GBP/USD continues to decline after recent rebound
GBP/USD has experienced a consistent phase of losses over the course of the month, with that selling pressure continuing this week. Bearing last week’s rebound in mind, this current move looks like a return to that bearish theme.
Given that such a move below $1.2605 would confirm the break below the 76.4% retracement at $1.2659, it would also provide a clue that the pair could ultimately head back towards the long-term low of $1.2435. A rise through $1.2748 would be required to negate the bearish trend that is currently in play.
AUD/USD turning lower following recent rebound
AUD/USD managed to muster a rebound into the crucial $0.6934 swing-high last week, with that level of resistance continuing to play out during recent trading days.
With the price turning lower this morning, there is a good chance the sellers will gain prominence as the day continues. Watch for an hourly close below the $0.6912 level to signal a likely bearish phase coming into play. Only with a break through the $0.6934 peak would we see a more bullish picture form.
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