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

Risk appetite has continued to recover, boosting the euro, sterling and the Aussie. 

EUR/USD finds strength to rally

EUR/USD pushed down last week towards the $1.22 level that has marked the limit of progress to the downside for the time being.

Buyers have pushed the price back towards the $1.2340 area that stifled progress a week ago. A daily close above here suggests a move back towards $1.2450 and higher could be in play. A failure to maintain upward progress brings a retest of $1.22 into view, and below this $1.2165 and $1.2092.

GBP/USD pushes higher

GBP/USD's defence of the 50-day simple moving average (SMA) over the past two weeks appears to have been resolved in favour of the buyers.

The late March peak around $1.4250, and then the January high of $1.4345 come into play if the pair sees further appreciation. For now, intraday dips will likely find buyers unless we see a close back below $1.3950.

AUD/USD rallies off firm base

The recovery above $0.77 bodes well for AUD/USD, particularly if global risk appetite continues to pick up.

The pair has been declining since mid-January, so the rally may stumble close to $0.79, but for now it looks like momentum lies with the buyers. A close below $0.7650 is needed to reverse the bullish outlook.

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