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

Dollar weakness and a hawkish turn from some big-name central bankers have prompted an outbreak of upside volatility in some FX pairs. 

GBP/USD figures
Source: Bloomberg

EUR/USD pushing higher

Having smashed through $1.13, there is now only the $1.1428 area standing between EUR/USD and a run at the 2016 highs above $1.15.

The parabolic nature of the move over the past week means there has been little chance for bulls to jump on board, as retracements have been few and far between. However, dips on the four-hour chart have proved to be good opportunities over the past three months, and so a pullback to $1.13 could provide another.

EUR/USD chart

GBP/USD retracements should be seen as buying opportunities

Carney’s sudden conversion to hawkishness has allowed GBP/USD to push back to the $1.3050 zone, but it is running out of momentum for now.

Retracements should still be seen as buying opportunities, especially since the break of the downtrend off the May highs. A pullback to this downtrend should see buyers materialise. 

GBP/USD chart

AUD/USD - high ahead US election on the way?

Here too the leap higher has been remarkable, taking AUD/USD to resistance at $0.7671, the highest level since the end of March.

Above here we have the third weekly resistance pivot at $0.7714, and then on to the pre-US election high at $0.7748. Support is possible at $0.7620, and then down to $0.7577, the weekly pivot, with this drop turning the outlook bearish on the daily time frame.

AUD/USD chart

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