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

Eurozone data will provide direction for euro pairs this morning, while the Aussie remains under pressure.

EUR/GBP
Source: Bloomberg

EUR/USD bounce fizzles out

The bounce off the EUR/USD lows of last week may well have run its course, as the price rebounds from below $1.16 but runs into previous support (now resistance) at $1.1662.

A failure to retake this key level will signal more weakness ahead, potentially down to $1.1498. A broader recovery would only result from a move back above $1.1750.

EUR/GBP heads towards trendline

EUR/GBP is taking further losses, heading back to a rising trendline that has held since May 2016. This area of rising support coincides neatly with the £0.8740 area where the price bounced back in September.

A turn higher from here would indicate the euro bulls are back in charge, with an initial target of £0.9022. A close below £0.8740 would be a bearish development, and suggest that the £0.84 area will be tested in due course. 

AUD/USD tries to break 200-day moving average

The steep losses for AUD/USD of late have slowed somewhat, but the price is now failing to break back above the 200-day simple moving average (SMA) of $0.7695.

Further losses will see the pair head back to the December 2016 rising trendline, which would suggest a drop to $0.7580.

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