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

The dollar is losing ground once more after Wednesday’s FOMC boost, with EUR/USD, GBP/USD and AUD/USD all expected to move higher.

Australian dollars
Source: Bloomberg

EUR/USD continues to regain lost ground

EUR/USD has been regaining ground since Wednesday’s sell-off fueled by the Federal Reserve (Fed). Crucially, we did not see a break below the $1.1837 mark, thus lessening the chances of a widespread sell-off.

As we move higher, the key hurdle to overcome is $1.2034, which would signal a continuation of the uptrend over recent months. Watch out for near-term resistance at $1.1995.

GBP/USD manages to remain above key support level

GBP/USD has been moving higher within a short-term range, with the Federal Open Market Committee (FOMC) decision also bringing downside for this pair. Importantly however, we saw the market respect the September 2016 high of $1.3445, which was a major breakout level on the way up last week.

As such, the breakout from this pattern is likely to come to the upside, with a break below $1.3445 negating that view. That being said, until we see that breakout, there is still a chance we could continue to consolidate.

AUD/USD looks to regain ground after sharp sell-off

AUD/USD is also regaining ground this morning, following a sharp sell-off in recent days. The move back through $0.7945 provides a short-term double bottom, which is likely to bring about further upside.

Given the size of the down move, there is a good chance we could see a significant move higher for AUD/USD here, with a break below the overnight lows of $0.7908 required to negate this bullish short-term view.

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