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

Top calling is in vogue again, as the pound, euro and Aussie all fall back from recent highs.

Euro and US dollar notes
Source: Bloomberg

GBP/USD hit by Carney’s comments

Carney’s press conference yesterday put cable back on a downward move, and so now we look to see if the $1.24 area can be broken. If it is, $1.2242 and then $1.2103 come into play.

A rally has to move back above $1.26 to suggest a test of $1.2827.

EUR/USD rally may be at an end

It has not been wise to call a top in this move from the December lows, but the double failure to break $1.08 this week could mark the end of the rally, at least for now.

Further downside moves would target $1.0710 and then $1.06 (the 50-day simple moving average). A rally has to post a daily close above $1.08 to indicate the buyers are back in charge.

AUD/USD downside may be set to return

The spike to $0.77 might mark the end of the bounce here, but we will need to see a move below $0.76, which would indicate more downside is on the way. Otherwise, this retracement could set the pair up for a move back to $0.77, and then on to the November high at $0.7785.

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