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

The dollar resurgence has continued, with EUR/USD, GBP/USD and AUD/USD all tumbling to signal potential bearish trend shifts.

EUR/USD back at range support

EUR/USD has dropped into the absolute bottom of its three-month range, with the $1.2154 level providing the critical area to watch out for today.

A break below there would signal a potential wider retracement of the $1.1554-$1.2556 rally. As such, keep an eye out for a reaction at this level, where a break below would signal the beginning of a decline towards Fibonacci support around $1.2055-$1.1936 (50-61.8%). Alternately, this could be the source of another rebound, given the existence of this multi-month range. It all comes down to the $1.2154 level.

GBP/USD drops out of uptrend

GBP/USD has broken out of its uptrend with the drop below $1.3965 this week.

That provides us with a bearish outlook from here on in, where $1.3889 being the next key support level to watch out for. A break below $1.3711 would provide a wider bearish signal, yet for now there is a strong chance we will see further downside come into play over the short term.

AUD/USD drops towards critical breakout level

AUD/USD has been in constant decline over the past week, with the price falling below trendline and Fibonacci support to signal a potential trend change.

The uptrend seen in play over the past two years would be negated with a break below $0.75, and given the below the 76.4% retracement, there is a strong chance this will happen. For the short term, the ability to remain below $0.7621 would point towards a continuation of the downtrend.

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