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

Dollar strength is back in play, with EUR/USD, GBP/USD, and AUD/USD all turning lower following recent gains. 

EUR/USD heading lower, with key support in view

EUR/USD failed to break the $1.1758 resistance level on Tuesday, with the pair turning lower as a result. The break through $1.1758 (bullish) or $1.1613 (bearish) provides us with the bias going forward.

With the price continuing to move lower, the bearish outlook is becoming increasingly likely. Thus, watch for the market reaction between here and $1.1613, where we either reverse higher, or else break and hold below that level for a bearish outlook to be confirmed.

GBP/USD turning lower, with rebound being undermined

GBP/USD managed to break below the $1.3102 support level yesterday, in a move that could signal the beginning of the next leg lower for the pair.

The key breakdown level to watch is $1.3049, where a fall below that level would signal a continuation of the wider downtrend in play over the past three months.

AUD/USD breaking lower to provide bearish continuation

AUD/USD has broken the $0.7360 mark this morning, completing a bearish head and shoulders pattern.

The gains we had been seeing recently were expected to be a retracement before we turn lower, and it seems that move lower is occurring. The $0.7308-$0.7329 support zone is key to providing greater confirmation to this bearish outlook. However, as long as we do not break above the $0.7444 mark, a bearish outlook is in play. 

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