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

EUR/USD, GBP/USD, and AUD/USD have regained ground overnight. Is this the beginning of a more bullish phase, or the moment we see dollar strength come back into play?

EUR/USD regains ground after German deal

EUR/USD is regaining ground following a deal between the German Christian Democratic Union (CDU) and Christian Social Union (CSU) parties, which allayed much of the fear surrounding Angela Merkel’s future.

Ultimately, the trajectory of this pair will be set by watching for a break below the $1.1510 (bearish), or above $1.1721 (bullish). Watch for near-term resistance at the 200-simple moving average (SMA), 4 hour, and the $1.1675 level.

GBP/USD moving back into trendline resistance

GBP/USD is also turning higher, following the sell-off seen yesterday morning.

The downtrend clearly remains intact for now, yet a break above trendline and horizontal ($1.3214) resistance would signal a bullish shift for the near term. Until that happens, there is a good chance we will see the pair weaken once more before long.

AUD/USD weakening from deep retracement

AUD/USD has rallied into a level between the 61.8% and 76.4% retracements overnight, with the pair now starting to turn lower.

The wider bearish trend clearly points towards a potential bearish reversal from here, in a continuation of the lower highs in play throughout June. A break above $0.7405 would signal a bullish shift for the pair. However, until that happens, a bearish bias remains in play. 

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