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

Both EUR/USD and GBP/USD are challenging key support levels today, following a period of downside. Meanwhile, AUD/USD upside looks unlikely to last.

Will EUR/USD bounce from key support level?

EUR/USD has continued its decline this week, with the price threatening to break below the crucial $1.1713 support level.

Should that occur, it would negate the wider bullish trend that has been in play since early November. Alternatively, the ability to break back up above $1.1811 would be key as a driver of upside for the pair. 

GBP/USD attempting to break key support

GBP/USD is similarly attempting to break out of its recent uptrend, with the price challenging the key $1.3320 support level. This would point towards a protracted move into the dollar and away from the pound, with the next key support level coming at $1.3221.

However, for that to occur, we would need a convincing break below $1.3320. Until then, there is still a possibility of a bounce, with a break above $1.3380 bringing a more bullish outlook.

AUD/USD retracing within bearish trend

AUD/USD has been regaining ground this week, with the price rallying back towards the deeper Fibonacci retracements.

This period of upside is unlikely to last given the wider downtrend, and as such it makes sense to look for shorting opportunities. The 61.8-76.4% retracements look particularly attractive for shorts. Ultimately we would need to break back above $0.7654 to negate this bearish outlook.  

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