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

FX markets seem calm compared to equities, but the dollar’s recent strength appears to be abating.

EUR/USD eyeing up trendline resistance

EUR/USD has steadily gained since it found support around $1.15, and more gains will see it challenge the downtrend line from the April peak.

This would suggest trendline resistance around $1.1730. A daily close above here would open the way to the $1.1850 high from the middle of June. A failure to breach downtrend resistance would see the price head back towards the $1.15 area of support that held throughout late May and early June.

GBP/USD rally stalls

The short-term bounce has seen GBP/USD clamber off multi-month lows, but the close above $1.32 would suggest that the buyers are in control for now.

June’s high at $1.3472 is the first area to watch for resistance. A close below $1.32 brings the June low at $1.31 into view.

AUD/USD continues to move lower

AUD/USD continues to retrace the gains made on Friday.

A move below $0.7350 would negate the potential bottom formed at the end of last week, but bulls need to push the price above $0.7440 to regain control. 

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