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

EUR/USD has faltered after trying to breach the 200-day moving average, while AUD/USD is looking to bounce.

Pound and euro notes
Source: Bloomberg

GBP/USD to go higher?

GBP/USD has been a dip-buyer’s paradise for the past two weeks or so. Now we are looking to see whether the pair can continue its ascent and push through the $1.2706 high from the end of January.

Beyond this lies the $1.2865 level, which served as support back in July and August. A turn lower requires the establishment of a new lower low, which would only occur once $1.2469 is broken.

EUR/USD facing potential reversal

EUR/USD attempted to smash through the 200-day simple moving average (SMA) at $1.0880 yesterday, but failed to hold its gains. As with cable, dollar weakness here has meant that dip buying has been the approach.

Fresh bullish momentum would see the pair head towards $1.0980 but in the near term we may see some reversal here. A drop below $1.0750 would be a worrying sign for bulls, but sellers are likely to be disappointed unless we can see a sustained price action below $1.06.

AUD/USD may bounce

The pullback from $0.7720 for AUD/USD has now run back to the rising trendline from the January low. This held at the beginning of March, so as long as we do not see a daily close below $0.75, further gains may be possible.

A bounce would target $0.7720 in the first instance. A failure to bounce from the trendline would mean that the $0.7490 area is the next point to look for support.

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