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

AUD/USD looks for another potential move lower following yesterday’s gains, while EUR/USD consolidation and a GBP/USD retracement could set us up for decent moves in Europe.

Euro notes
Source: Bloomberg

EUR/USD consolidating after recent rally

EUR/USD is trading within a triangle formation following on from last week’s French election-fueled rally. The break through $1.0906 provided us with a confirmation of the wider uptrend, and as such even if we did sell off from here, it would look like simply being a correction within that trend.

For a bearish short-term view to come into play, we would need an hourly close below $1.0851. Conversely, an hourly close above $1.0950 would point towards another leg higher within the current uptrend. 

GBP/USD in short-term pullback

GBP/USD has weakened at the beginning of the week, with price almost back to the 50% Fibonacci level.

The key here is that until we see price break below $1.2756, it looks as if this current weakness will be a short-term move before we push higher once more.

As such, the 61.8-76.4% retracement zone ($1.2805-$1.2861) looks particularly interesting for longs.

AUD/USD turns lower from resistance confluence

AUD/USD rallied into trendline resistance yesterday, as the pair looked to retrace some of the losses seen last week. With price having rallied into trendline resistance, there is a good chance we will see this pair turn lower once more from here.

Given that this move came into the 76.4%, we have seen a nice deep retracement. Essentially, while we remain below $0.7584 it looks likely we will turn lower once more to continue the downtrend in place since the March top.

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