The advance of the US dollar continues, and against some currencies, key levels come into play. Will they bounce or break?
EUR/USD extends its drop below 1.28 and is approaching a key double bottom line on the weekly chart at 1.2750, where we have a double bottom. Breaking below this level will send the pair to the lowest since November 2012.
At 1.2766 at the time of writing, this line is getting close. 1.2660 is the next key line on the downside, and 1.28 works as resistance.
AUD/USD is trading around 0.88, which was support in December 2013 and also beforehand. This is also an extension of the fall and the lowest since February. 0.8750 is the next line below and 0.8910 works as resistance. RBA governor Glenn Stevens talked earlier.
NZD/USD also continues its downfall and has now breached the very round number of 0.80. This break is awaiting confirmation. The New Zealand government said that the exchange rate is unjustifiable and unsustainable.