FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The Aussie remains under pressure, as does the euro, but little seems to stand in the way of further sterling gains.
EUR/USD falls out of rising channel
Yesterday’s European Central Bank (ECB) meeting resulted in EUR/USD being knocked below its rising channel support line. It has, however, managed to hold $1.13. If this support level continues to be held then a bounce back towards $1.14 is possible.
However, bulls will need to avoid a lower high following on from the weakness around $1.139.
No stopping GBP/USD
GBP/USD continues to move higher, with a close above the 200-day simple moving average (SMA) at $1.3073 for the first time since 7 May.
A pullback towards $1.295 might find support. Upside targets lie at $1.32 and then $1.33.
AUD/USD still under pressure
Yesterday’s early drop was not followed up by much of a bounce, and if AUD/USD cannot break $0.711, then another selling opportunity may develop.
A rebound above $0.717 is needed to provide a more bullish view.