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

The bullish breakout for AUD/USD points towards a potential bullish shift against the dollar. However, with GBP/USD and EUR/USD still trading well below key resistance, the European downtrend remains intact against the greenback.

GBP/USD continues to climb after recent sell-off

GBP/USD is continuing its ascent following the sharp deterioration through last week. This looks likely to be a retracement, yet given the size of the initial downturn, it is likely that we will see further upside in the near term as the pair forms a deeper retracement.

It looks likely that the move higher we are currently seeing is a retracement rather than a bullish reversal. With that in mind, look out for further upside to bring us into a deeper retracement, where a break above $1.3072 would be required to negate the expectation of a bearish turn before long.

EUR/USD rallies into deep retracement level

EUR/USD has been regaining ground, with the pair moving into the crucial 76.4% retracement at $1.1433.

There is a high likeliness that we are seeing a retracement in play here, with a break above $1.15 required to negate the premise that this a short-term pullback before we see the pair turn lower once again. Until then, there is a strong chance we will begin to weaken again before long.

AUD/USD breaks through key resistance level

AUD/USD has managed to break through a crucial area of resistance, with the rally above $0.7315 pointing towards an end to the downtrend in play throughout 2018 so far.

With that in mind, further upside looks likely, with a bullish short-term outlook in play unless we see a break below the $0.7250 swing low. Below that, we would likely be looking at a retracement of the rally from $0.7164.

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