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

Dollar gains have dragged the likes of EUR/USD and AUD/USD lower, yet with Fibonacci support in play, there is a strong chance we will see a move higher from here.

EUR/USD retraces into key Fibonacci support

EUR/USD been continuing its period of weakness, following the rally into a new swing high last week. That break into a new 40-day high means that the current weakness we are seeing is likely to be a retracement, rather than a bearish reversal.

With that in mind, the pullback into the 76.4% retracement is particularly interesting. This deep retracement looks like a good area to go long, with a break back below $1.2239 required to negate this bullish outlook

Will EUR/GBP continue to rise?

EUR/GBP has been moving gradually higher following the retracement into a crucial support zone last week.

With the price around the bottom end of its recent ascending channel, there is a strong chance we could see the price rise once again. A more bearish outlook would come with an hourly close below £0.8733.

AUD/USD turning higher from confluence of support

AUD/USD is moving higher after the price fell into the merging trendline support and the 76.4% retracement. Given the multi-month uptrend, there is a strong chance we will see the price begin to turn higher from here.

Looking at the longer term, there is a bearish case to answer to, but that would only come back into play with a break back below $0.7501. Until then, this index looks like a particularly interesting area for longs.

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