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

Easing of trade war fears has helped revive the US dollar for the time being. 

EUR/USD falls back to support area

EUR/USD has fallen back to the area around $1.2250 that provided support back in mid-March.

If this holds, then a bounce back towards $1.24 is possible, and then on to the $1.25 area. A break lower targets $1.2165 and then $1.2093.

GBP/USD pauses after modest gains

After edging higher over the past few days, we have seen GBP/USD stall below $1.41, but the services purchasing managers index (PMI) will likely restore a degree of direction.

Above $1.41, the $1.4145 and then $1.4220 levels come into view. A close below $1.40, which has provided support over the past week, would bring on a more bearish tone and suggest a move down to $1.3943 and then $1.3836.

AUD/USD rally stalls

Having rallied off the lows around $0.7640, AUD/USD has faltered around $0.7720.

A further drop will bring $0.7650 back into view, while a reversal would open the way to $0.7750 and $0.78. 

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