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

The dollar weakness story looks likely to continue, with EUR/USD, GBP/USD and AUD/USD having gained ground this week. However, with EUR/USD and AUD/USD at key resistance levels, will we see key upside breaks today?

Source: Bloomberg

EUR/USD pauses at crucial resistance level

EUR/USD has finally paused for a breather following a week of substantial gains in the pair. The $1.1123 mark is a crucial resistance level considering that it previously underpinned a descending triangle pattern for over two-months.

As such, the retest of this area as new found resistance means we need to break through to provide a clue that the rally is set to continue. Until then, there is a chance we could start to see the pair turnaround from here.

The daily chart shows that we have posted a spinning top candle yesterday, with the 50-day simple moving average (SMA) also providing resistance at this region. Thus, watch out for the response to this level as a sign of where the next move is going to come. 

GBP/USD rally likely to persist

Yesterday saw an incredible rally for GBP/USD, following a particularly super Thursday. Price has been consolidating overnight, with the next move likely to provide another leg higher for the pair.

As such, an hourly close above $1.2494 would provide a renewed bullish view, whereas an hourly close below $1.2418 would hint at a deeper retracement of yesterday’s rally, at which point the Fibonacci support levels come into play.

AUD/USD attempting to push through major level

AUD/USD has been attempting to push through the $0.7689 resistance level overnight, following on from a week of gains in the pair. Despite a retracement this morning, we have seen price pull back to an ascending trendline for support.

As such, the uptrend remains intact, with a push above $0.7689 likely. Should that occur, watch out for the wedge top and $0.7697 as the next key points of resistance.

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