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

Small gains for EUR/USD come after heavy losses, while the Aussie is trying hard to bottom out after a sustained downtrend. 

Australian dollar notes
Source: Bloomberg

EUR/USD holding the $1.0850 for now

After three days of losses EUR/USD has found some buying momentum, holding the $1.0850 area. However, for now this looks more like an opportunity to sell into strength, particularly if the pair fails to recover $1.09.

A reversal of the small overnight gains would indicate that the sellers are still in control, and that we can expect a push to the 200-day simple moving average (SMA) at $1.0828 and lower.

GBP/USD - RSI showing declining momentum

The Bank of England (BoE) day has arrived, which means we are likely to see increased volatility for GBP/USD after several quiet sessions. Over the past week pushes towards $1.30 have been defeated, with the daily relative strength index (RSI) showing declining momentum.

However, we can see intraday support at $1.2930 and then $1.29, while below this $1.2840 comes into play. 

AUD/USD - a bigger rally on the way?

Having managed to halt the rout around $0.7340, AUD/USD bulls will be looking for a push back towards $0.74, with a move above this on the hourly chart creating a new higher high and reinforcing the impression that a bigger rally could be in the making.

A potential resistance area at $0.7474-$0.7493, and a move in this direction would also run into resistance from the descending trendline off the March highs.

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