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

The euro has held its gains and is pushing higher, but the Aussie is losing ground against the dollar. 

Euro and pound coins
Source: Bloomberg

EUR/USD controlled by the buyers

After a consolidation session yesterday, there are now signs that the buyers are taking control here once again. The price is testing the water above yesterday’s high of $1.0890, with a move above here leaving it clear to test the $1.0906 high from late March. Above here the longer term view would suggest a move towards the downtrend line off the April 2016 highs in EUR/USD, in the direction of $1.10.

Yesterday bears failed to get the price below $1.0820, so this is their first task to begin a new move lower.

GBP/USD – wait and see

The election announcement has left GBP/USD sitting at $1.28 against the dollar, with no sign that the bears can break the $1.2775 support level that has held over the past week.

Admittedly, we haven’t seen much upward momentum either, so it is case of waiting to see whether $1.2775 or $1.2850 breaks first. 

AUD/USD in a risky territory

AUD/USD has reversed course against the US dollar, giving back yesterday’s gains and falling below the 200-day simple moving average (SMA) at $0.7552.

Now the $0.7473-$0.7494 zone is in sight as the next potential area of support. If this holds, a move back to $0.7560 is possible, but a drop below here would leave the pair exposed to a fall to $0.7364 and then $0.7310.

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