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FX levels to watch – EUR/USD, GBP/USD and AUD/USD

The dollar comes under pressure, as gains across EUR/USD, GBP/USD and AUD/USD look set to pave the way for further upside.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

EUR/USD punches to March high

EUR/USD has hit the highest level since mid-February, with the price clearly reversing higher amid the recent creation of higher highs and higher lows.

There is a strong chance that we will see the pair pull back at some point, yet as long as the price remains above the $1.2285 swing low, there is a good chance that any such downside would be a short-term retracement before we push higher. As such, a bullish outlook remains in place unless the price falls below $1.2285.

GBP/USD pullback unlikely to last

GBP/USD is pulling back this morning, with the price turning lower after hitting the highest level in seven weeks. This recent uptrend is likely to remain intact for now, with a break below $1.4070 required to negate the idea that we are simply seeing a short-term retracement before we move higher again.

With that in mind, look out for the four-hour simple moving average (SMA) middle Bollinger band as support, with the price expected to move higher. A break below $1.4070 would not necessarily provide a lasting bearish tone, with such a move pointing towards a retracement of the wider move starting from $1.3711.

AUD/USD rallying from trendline support

AUD/USD has moved higher from trendline support over the past week. The slow nature of this recovery is a worry for bulls, and a more positive picture would come with a break above $0.7785.

Conversely, a break below $0.7712 would be a worry for this short-term ascent. With that in mind, a tentative bullish immediate view remains, unless we see a break below the near-term intraday swing low of $0.7712.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.