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

GBP/USD tumbles once more, as we look ahead to the UK services PMI reading and a speech from Mark Carney. Meanwhile, EUR/USD trades in a triangle and the AUD/USD looks primed for another leg higher.

Euro and dollar notes
Source: Bloomberg

EUR/USD trading in triangle pattern
EUR/USD is trading within yet another symmetrical triangle formation, in a wider move which looks most likely to be a short-term bounce prior to another leg lower. The failure to create a new high yesterday was a warning sign that this weakening is starting.

However, the higher low confirmed a triangle pattern which means we await an hourly close above $1.1159 for a bullish short-term outlook or an hourly close below $1.1119 for a return to the medium-term bearish outlook.

GBP/USD breaks lower once more
IN_GBPUSD has broken to the downside once more this morning, following a period of consolidation in the past two trading days. The inability to break through $1.3349 was very telling and we are expecting further losses.

As such, while price remains below $1.3349, further downside is expected, with $1.3206 providing near-term resistance. The next key support level of note is $1.3121.

AUD/USD pullback unlikely to last
AUD/USD weakness overnight was driven by a host of economic data, which negated the initial gains after the RBA held rates steady this morning. However, we are in a clear uptrend since the EU referendum. Arguably, the AUD should be well prepared to weather any contagion effects from that decision and as such, further gains seem likely.

Given that this pair is set within a bullish trend since the May lows, it seems likely that we will return to the $0.7650 area soon enough. For the short-term, another leg higher seems likely, with a bullish view in place unless we see an hourly close below $0.7460. The next resistance level is $0.7545.

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