Dollar strength continues to drive EUR/USD, GBP/USD and AUD/USD lower
EUR/USD, GBP/USD and AUD/USD continue to move lower, with bearish trend likely to continue as we close out the week.
EUR/USD respects Fibonacci resistance after Wednesday pop
EUR/USD has managed to arrest its declines over the second half of the week, with Wednesday’s consumer price index (CPI) reading providing a rare day of gains.
That move higher brought us into the 76.4% Fibonacci resistance level at $1.1754, which is an initial resistance level to consider. A beak up through the $1.1769 level brings about the potential for a wider retracement of the $1.1908 to $1.1706 move. As such, a bearish view holds, with a rise through $1.1769 pointing towards a greater potential for near-term upside.
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GBP/USD continues to move lower after support break
GBP/USD has continued its path lower following the break below $1.3843 on Tuesday.
The break through $1.391 in late July does highlight the strong chance that this current pullback is a short-term move before the price turns upwards once again. However, a bullish signal comes with an exit from this intraday trend of lower highs. Thus, for now, a rise through $1.3888 would bring the bulls back into play. Until then, further downside looks a strong possibility.
AUD/USD at risk of another sell-off as price approaches support
AUD/USD has turned back down towards the key $0.7316 support level, following a 61.8% Fibonacci retracement in the wake of a downside trendline break.
That means we could soon see the wider bearish trend kick in once again, with a break below $0.7316 to $0.7289 signaling a continuation of that negative outlook.
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