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

The dollar is back — after an FBI announcement overnight, the greenback has gained across the board. Will this continue ahead of the all-important US election?

Pound and dollar
Source: Bloomberg

EUR/USD drops below key support

EUR/USD has dropped like a stone after the news that the FBI will not take any further action over the Hillary Clinton emails. Bearing in mind that we saw the whole of last week dominated by the initial announcement from the FBI, there is a substantial amount of ground to be made up.

With price now below $1.1059, we are likely to see further losses to come. As long as we do not see a break back above $1.1123, then a bearish outlook is in play.

GBP/USD downturn expected to persist

GBP/USD has also suffered at the hands of a resurgent dollar, with price breaking below the crucial $1.2417 mark.

As it stands we are seeing the sell-off extend beyond that level which points towards the potential for very little retracements today.

As such, a bearish outlook is in play as long as price does not break back above $1.2557. 

AUD/USD strength highlights Aussie resilience

AUD/USD has managed to resist the effects of the FBI announcement, with price remaining remarkably resilience. We have seen price trading within a rising wedge pattern over the past week and this looks set to continue, for a move back into the $0.77 region.

The break above $0.7710 or below $0.7652 will likely dictate the next major move.

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