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

The dollar sell-off continues, with EUR/USD, GBP/USD and AUD/USD all seeking to gain further ground.

Euro currency
Source: Bloomberg

EUR/USD pullbacks give long opportunities

EUR/USD saw another leg higher from $1.0710 support yesterday, continuing the uptrend and maintaining the bullish outlook. This morning’s retracement has not even come back into yesterday’s high of $1.0745 and is already starting to move higher.

Should we break below $1.0705, then things would start to look different, but until then, further upside looks highly likely. 

GBP/USD uptrend continues

GBP/USD has gained once more this morning, following a period of consolidation. The shallow nature of that pullback highlights the fact that there remains a substantial amount of bullish sentiment in play here.

Given the break through yesterday’s high of $1.2377, the relevant swing low needed to break the trend moves to $1.2324. As long as we do not break below that level, further gains seem likely from here.

AUD/USD appears to be breaking higher after consolidation

AUD/USD has broken higher from a bullish wedge pattern, with the push through $0.7684 pointing towards the potential for another move higher. This morning’s subsequent pullback managed to rally from a level higher than $0.7663, thus posting a higher low.

Unless we break below $0.7663, it looks like we could be set for another move higher. That being said, watch out for major resistance around the $0.7740 should a break higher occur.

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