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

Sterling traders await the UK’s CPI figures this morning as they look for clues on rate hikes, while the Aussie is looking to rebound from overnight losses.

Australian dollar
Source: Bloomberg

EUR/USD hopes for a rally

Having faltered last week below $1.19, EUR/USD is under further pressure. Additional downside from current levels would head towards the $1.1662 low from August, which remains the vital level to watch.

A drop through here would create a new lower low on the daily chart. A recovery above $1.19 is needed to put a more bullish spin on things.

GBP/USD waits on inflation data

As GBP/USD looks to maintain its momentum from the October lows, today’s consumer price index (CPI) reading will be a make-or-break moment for cable.

A close above last week’s high of $1.3338 would open the way to $1.3427, and then $1.36. Downside targets lie at $1.3153, and then $1.3050.

AUD/USD bounces from overnight lows

A pullback for AUD/USD from the Friday highs has provided a possible buying opportunity, as the price finds support at $0.7835. From here the $0.79 area comes into play, and then the 50-day simple moving average (SMA) at $0.7910.

Above this, the highs of September at the $0.81 area are the next destination. But if gains falter and the price drops, $0.7835, then $0.7807 and $0.7748 are the areas to watch for possible support. 

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