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

Talk of potential hints about monetary policy from Janet Yellen later in the week has given the dollar breathing space in recent days, but that appears to be reversing this morning. 

Euro and dollar notes
Source: Bloomberg

GBP/USD moves higher
Cable continues to enjoy gains, even if the longer-term picture still sees the pair stuck in its post-Brexit range. Early August’s highs of around $1.3370 would be the area to see some potential resistance, while selling into strength would appear to remain the default approach here.

The downside target remains the $1.2880 area, where the pair rallied in early July, and last week.

GBP/USD daily chart

EUR/USD on upwards move
A turnaround yesterday saw the pair move back above $1.13, and fresh gains today may see a move through last week’s high of around $1.1370.

Above here, the next resistance level to come into play would be $1.14, where June gains ran out of steam, while above here we would look towards $1.15.

A strong performance in August has reinvigorated the 2016 uptrend, so dip buying remains the approach here. 

EUR/USD daily chart

AUD/USD continues uptrend
A modest pullback over the past two weeks for the pair does little to put a real dent in the uptrend that has prevailed since the last quarter of 2015.

The recovery above $0.76 might suggest that the buyers are back in charge, although they would then need to clear $0.77, where gains petered out earlier in the month. 

AUD/USD daily chart

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