FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The dollar is expected to come under pressure once again, with the likes of GBP/USD and AUD/USD in particular looking primed for a rally from here.
EUR/USD consolidating after recent ascent
EUR/USD has been consolidating after Friday’s gains, with the pair in rebound mode from the critical $1.1301 support level. As mentioned yesterday, the 76.4% retracement level at $1.1299 points towards a potential that we are not rolling over after failing to create a new higher high. Instead, that could have been a retracement of the wider rally ($1.1215-$1.157), where a rally through $1.157 would signal the continuation of this uptrend.
Watch out for how the pair responds to the 61.8% and 76.4% Fibonacci resistance levels as a signal of whether we are in retracement mode or going to push up through $1.157.
GBP/USD looks set to continue upward trend
GBP/USD eased back overnight, bringing the pair into the 76.4% retracement level.
The wider uptrend remains intact unless we see a drop below the $1.3012 swing low. The current respect of the Fibonacci support level points towards an upward move from here.
AUD/USD at key resistance breakout zone
AUD/USD has been pushing upwards, with the pair rising into trendline resistance. The creation of a higher low this week provides half the bullish story, with a break through the $0.7204 resistance level providing confirmation of that bullish outlook.
Look at the $0.7204-$0.7235 zone of resistance, where a breakout through that area would signal a bullish reversal.