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

Dollar weakness continues to drive the euro and sterling higher, while in AUD/USD, this has been combined with a hawkish set of minutes, prompting a substantial rally. 

Australian dollar
Source: Bloomberg

EUR/USD going up on the back of a weak dollar

Dollar weakness continues to drive EUR/USD higher, with resistance at $1.1536 being tested early on this morning.

The level that bears need to break, if they are to get any chance of reversing the current trend, remains at $1.1370. Otherwise, the sequence of higher highs and higher lows is still intact. Above $1.1536, $1.1616 and then $1.1714 comes into play.

EUR/USD price chart

GBP/USD to move above $1.3113?

Bulls defended the crucial $1.3048 level yesterday, keeping the breakout intact. Now it has bounced off this level, and could well push on above the $1.3113 level.

In the longer term, GBP/USD could now head towards the September 2016 peak at $1.3427. It needs a daily close back below $1.3048 to put a more bearish spin on things, and even then it needs to break $1.28 to really signal that a longer-term drop is at hand.

GBP/USD price chart

AUD/USD breaks resistance

The breakout for AUD/USD continues, with resistance at $0.7835 finally broken. The steady rising trend since the June low means that we would need a close below $0.78 to begin to look at this in a more bearish way. But it looks to be a dip buyers’ market from this point onwards.

The next big area to watch from here is $0.8075.  

AUD/USD price chart

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