FX levels to watch: EUR/USD, GBP/USD and AUD/USD
EUR/USD, GBP/USD and AUD/USD have been falling amid dollar strength. With key support levels coming into play, we could see some significant bearish breaks if we do not rebound soon.
EUR/USD falling towards key support zone
EUR/USD has been declining steadily throughout the past two weeks, with the pair turning lower from the 76.4% retracement.
The fall below the $1.1301 low last month pointed towards a potential rolling over of the pair, yet we will get confirmation of that move with a break below the $1.1289-$1.1301 zone. Given the depth of this recent period of downside, it looks likely that this is not a retracement and thus a move back into that support zone looks likely from here. A break through the $1.136 level would point towards a more bullish move coming into play.
GBP/USD starts to turn lower again after yesterday’s rebound
GBP/USD managed to muster a late rebound yesterday, following on from a recent period of weakness. We are seeing the pair turn lower once again this morning, with the downtrend of the past week coming back into play.
However, it is worthwhile noting that given the break through the $1.2979 swing high, we could start to see the pair strengthen from here. As such, it makes sense to look for a break through $1.30 as a buying opportunity. Alternately, a break below the $1.2854 level would maintain the bearish short-term downtrend.
AUD/USD falls into crucial support level
AUD/USD has declined overnight, following a write-down in the growth forecasts from the Reserve Bank of Australia (RBA). This has taken the pair back into the critical $0.7076 support level.
Should we manage to break below this level, we would be looking at a potential drop back into the critical $0.6827 support level. For today, however, we are looking for the reaction to this level, with a rise above $0.7117 providing us with a short-term bullish signal.