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

US dollar strength threatens to sweep all before it, as EUR/USD, GBP/USD and AUD/USD all look likely to fall sharply as the week progresses.

GBP/USD forex pair
Source: Bloomberg

EUR/USD party seems to be over
EUR/USD has had things all its own way over recent weeks, rallying heavily with few pullbacks. However, having run into a major trendline resistance, the pair has turned lower in a convincing manner.

Yesterday saw the pair mainly consolidating, yet further downside seems likely, with a closed hourly candle below $1.1465 representing the bearish signal to bring the $1.1396 support level into view. The $1.1465 level is crucial, representing the April peak.

This bearish view would come into question with a rally back above yesterday’s high of $1.1530.

GBP/USD selling from Fibonacci resistance
GBP/USD has rallied into the 61.8% retracement overnight, with the pair subsequently selling off this morning. We appear to be moving into a more bullish period for the dollar and as such, the recent strength of GBP/USD appears to be unwinding.

With that in mind, another move lower appears the move likely event today. A bearish view is held unless we see an hourly close back above $1.4572.

Support levels of note are $1.4461, $1.4442 and $1.4400. Resistance levels of note are $1.4530, $1.4546 and $1.4572.

AUD/USD beginning downtrend
The AUD/USD pair has fulfilled a number of requirements in recent weeks to validate the idea that we are no longer within an uptrend. The close below $0.7477 is just the latest.

We have seen the pair rallying overnight after strong Australian trade data, yet this is already starting to unwind. A bearish view is in play here, with another leg lower likely to occur before long.

A closed hourly candle below $0.7450 would provide a strong signal this is going to occur. In which case, support levels of $0.7439 and $0.7382 will come into view.

Alternately, a closed hourly candle above $0.7517 would indicate a deeper retracement of the Tuesday sell-off, with $0.7549 the next key resistance level.

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