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

Dollar strength is expected to drive EUR/USD and AUD/USD lower, yet with the Brexit outlook improving, GBP/USD continues to regain ground.

EUR/USD rally looks set to falter again

EUR/USD has been regaining ground overnight, with the pair moving into trendline resistance.

The ability to break above $1.1550 will be key in reversing this short-term trend. As such, a bearish outlook remains unless that swing high is broken.

GBP/USD pulling back after recent ascent

GBP/USD has been an outperformer of late, with yesterday proving no different.

The pair managed to rally into an October high to continue the short-term bullish trend. While we are looking likely to retrace some of the gains seen yesterday, a bullish short-term outlook remains unless we fall below $1.3033.

AUD/USD starts to reverse lower yet again

AUD/USD has been attempting to regain some ground following on from the consistent decline of recent weeks. However, the recovery is looking like it could come under pressure should this bearish engulfing pattern complete.

Such a bearish closed candle would provide greater confidence that we are going to continue the recent downtrend. However, we saw something similar on Tuesday morning, which led to a minimal pullback. Thus, for greater confidence that this weakness is going to have longevity to it, watch for a break below $0.7054. Until then, further short-term gains could come into play.

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