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

The dollar appears to be on the back foot once more, in a continuation of Friday’s NFP fuelled sell-off. However, with yet another Brexit poll pointing towards a gain for ‘leave’, it is not so simple for GBP/USD.

Euro and dollar notes
Source: Bloomberg

EUR/USD rally looks set to continue
The pair saw a major move higher on Friday following the weak NFP number out of the US. While we have seen a shallow pullback overnight, the pair is pushing on once more, with the ability to break through $1.1374 key to further gains.

As such, an hourly close above $1.1374 points towards the next resistance level at $1.1415. The bullish view would come into question with an hourly close below $1.1336.

GBP/USD recovering after Brexit poll sell-off
The pair has suffered a sharp sell-off at the open, as the latest Brexit polls came out in favour of the ‘leave’ campaign. However, crucially, we did not see the pair break through the $1.4333 support level, which would have completed a double top formation.

As such, the pair is rallying currently, with initial resistance levels at $1.4442 and $1.4473. Given the size of this sell-off and the importance of the 1.4333 support level, a bullish view is in play for the short-term. After that, it is a case of waiting for a break either below $1.4333 or above $1.4582 to re-establish the market direction given the current higher highs/lower lows scenario.

AUD/USD heading higher once more
​The pair seems to have bottomed out over the past few weeks, with Friday’s break higher running back into the key $0.7367 resistance from three weeks ago.

This level will be crucial once more today, where an hourly close above $0.7367 would point towards another leg higher for the pair. Should that occur, the next resistance level of note is found at $0.7402.

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