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

EUR/USD is the clear outperformer on current grounds, yet with the dollar showing signs of potential strength, GBP/USD and AUD/USD are looking in danger of another period of weakness.

EUR/USD rallies into key resistance level

EUR/USD has managed to rally through a number of resistance points, with the price almost hitting the $1.1746 high from late August. The ability to rally through this $1.1746-$1.1790 resistance zone is going to be key in determining whether we are set for further upside or not.

As such, watch for a potential period of weakness if we do not break higher. With trendline support helping encourage further upside we would want to see a break below that line alongside the $1.1594 level to signal a bearish shift for the pair.

GBP/USD turns lower from trendline resistance

GBP/USD sold off from a descending trendline yesterday, bringing the wider downtrend into play.

The ability to break below the $1.2799 low will be crucial in determining whether this is the beginning of another leg lower for the pair. Alternatively, watch for a potential break above the $1.2936 level as a signal of impending upside.

AUD/USD turns lower from SMA resistance

AUD/USD has started to weaken once again following a rally into the 200-day simple moving average (SMA) resistance on the four-hour chart.

The wider context shows a market that is clearly trending lower, and as such it makes sense to look out for another period of weakness before long. The break below the near-term swing low of $0.7307 looks particularly interesting as a signal of further downside to come. Otherwise, a rally through $0.7453 would provide a more bullish view for the pair.

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