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

Dollar strength continues to be felt, with the sellers in charge in EUR/USD and AUD/USD. 

EUR/USD holds support zone

EUR/USD remains close to the $1.22 support area, although it is testing the bottom end of that range.

As yesterday, $1.2165 and $1.2092 remain possible support, and we need to see a push above $1.24 for the pair to create a breakout. Given that yesterday’s bounce was so meagre and is already running into selling, it looks like the sellers remain in charge here.

GBP/USD hits bounce territory

GBP/USD has been similar to EUR/USD in that yesterday’s bounce has fizzled out, although the uptrend over the past year is still intact and stochastics on the daily chart are now in oversold territory.

A bounce could materialise from here, but this would need a move back above $1.4036, the 50-day simple moving average (SMA).

No turnaround in sight for AUD/USD

There will be plenty of hand-wringing among bulls as AUD/USD continues to fall below the long-term rising trendline.

Any bounce that fails to move back above this trendline and the $0.7650 area would likely be a selling opportunity, with a push to the $0.75 level in view.

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