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

Short-term weakness across the likes of EUR/USD and GBP/USD could be fleeting, yet with AUD/USD continuing to suffer at the hands of weaker commodity prices, we could see that downtrend last longer.

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EUR/USD turning lower following surge

EUR/USD surged higher yesterday as hopes of an Emmanuel Macron victory helped boost eurozone sentiment. We are seeing a small intraday double top coming into play this morning, which points towards a retracement phase for the time being.

With that in mind, further downside does seem likely, yet this would just be seen as an opportunity to get long once more. Near-term support comes in the form of last week’s high of $1.0951. A bullish outlook remains in play unless we break below the $1.0874 mark.  

GBP/USD looks set for short-term pullback

GBP/USD is retracing some of its early gains today, as the pair moves towards a crucial resistance level. While we have broken through trendline resistance, we still remain within a downtrend over the past week. A break above $1.2948 would be required to negate the creation of lower highs. Given the wider uptrend in play, a bullish breakout seems likely before long, yet whether this will occur today remains to be seen.

As such, an hourly close above $1.2948 would provide a resumption of the bullish outlook. Until then, there is a good chance we could see further downside for this pair today. Should that move take us below $1.2900, this would have wider implication and brings about the possibility of another lower low, below $1.2831. 

AUD/USD expected to continue downtrend

AUD/USD looks to be regaining some ground this morning, following on from an almighty sell-off this week. As long as we continue to create new lows and lower highs, this trend is expected to remain in play, thus pointing towards this bounce as a selling opportunity rather than anything detrimental to the trend.

As such, while price remains below $0.7415, a bearish outlook remains in play, with the 61.8%-76.4% resistance zone ($0.7397-$0.7404) an interesting area for shorts.

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