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

Some overnight weakness for the dollar has been swiftly reversed this morning.

Downtrend for EUR/USD

The price for EUR/USD rallied to the descending trendline, but while it managed to move above this trendline, it was not able to hold above it.

The turn lower now suggests that the downtrend is back in play, and we look for a move to $1.2250 and then $1.2165. A rally back above $1.24 is needed to reverse the bearish outlook.

GBP/USD on a strong run

There has been little stopping the pound in recent days, and the move above $1.4145 should mean that the price for GBP/USD is headed towards $1.4248.

We have yet to see a real retracement, but it looks like any such pullback remains a buying opportunity.

AUD/USD faltering despite rally

The price for AUD/USD has finally managed to rally, but it is already faltering.

Further declines will target the $0.7671 low from earlier in the week. Even a recovery that moves back above $0.7790 would still be a sell since the pair remains stuck in a downtrend.

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