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

A sudden flurry of news has sent GBP/USD southward, while EUR/USD continues to struggle. 

Dollar notes
Source: Bloomberg

EUR/USD 50-day SMA could stand in the way

EUR/USD breakdown goes on here, with yesterday’s rally to $1.1208 (the weekly pivot) being met by fresh selling. Now the low of last Thursday is under threat, with a push below $1.1130 likely to see a test of $1.1109, the crucial level.

Below this we have the key $1.10 level, although the 50-day simple moving average (SMA) at $1.1023 could stand in the way. From the looks of it, intraday rallies will continue to be sold for the time being.

EUR/USD chart

GBP/USD hampered by Carney

Mark Carney has intruded on the calm of the session this morning, sending GBP/USD flying lower this morning as he reiterated his call on not raising interest rates. This is hardly a surprise, as last week’s Monetary Policy Committee (MPC) meeting showed, but it has been enough to send the pair into freefall.

If it holds below $1.27 then $1.2616 will be the next target, and then below this the 200-day SMA at $1.2557. As with EUR/USD, the sellers appear to be in control, with a recovery above $1.28 needed to reverse the bearish outlook.

GBP/USD chart

AUD/USD - upward momentum?

AUD/USD has recovered early on in the London session, holding the weekly pivot at $0.7591. A push above $0.7540 would see the pair clear the highs from last week that were so assiduously defended by the sellers.

This would open the path to $0.7680 and then $0.7750. Sellers will need to break $0.7570 to get some real downward momentum. 

AUD/USD chart

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