Our suspicions expressed last week proved right, and the EUR/USD breakout turned out to be a false one indeed. This can be clearly deemed from the sell-off which followed the unsuccessful attempt on the 1.0640 dynamic resistance. This development has clearly put the forex pair’s correction to an end. With this in mind, any attempts on the upside should be capped below 1.0600. The EUR/USD is now expected to extend its slide toward the 1.0448 static support, en route to 1.0334.
The weakness that the GBP/USD exhibited below the dynamic resistance puts the dollar bulls back into full control. The British pound is likely to continue being outperformed by the greenback. Next target for the FX pair on its way down is 1.2034; a potential breakout there will open the way for a more serious sell-off toward the key 1.1800 support.
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Although last week’s slide was contained at the 0.6285 support, the picture for the AUD/USD remains bearish. The forex pair is expected to eventually penetrate the aforementioned technical level. Once that becomes a fact, the AUD/USD would make another leg lower toward the long-term 0.6169 support.
Disclaimer: The above analysis is based on technical indicators and historical price action. It does not constitute financial advice. Always conduct your research before making any investment decisions.
