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

The dollar sell-off continues, with EUR/USD, GBP/USD and AUD/USD all moving higher. However, with key resistance coming into play, will this rally last?

Australian dollar
Source: Bloomberg

EUR/USD moving higher after retracement

EUR/USD has been moving higher this morning, following a pullback on Friday. Clearly, we are trading within the upper echelons of a rising channel, yet as long as we continue to create new highs and higher lows, the short-term uptrend remains in play.

The next big bullish hurdle to overcome is $1.0829, where a break above would provide a significantly more positive medium term picture. An hourly close below $1.0727 would provide a bearish short-term view, where the pair could begin to move back towards trendline support. 

GBP/USD rallies into trendline support

GBP/USD has pushed into a key trendline resistance this morning, off the back of a particularly strong week for the pair. The continued creation of lower highs is thus in question once more. Currently, we would need to see a break through $1.2570 to bring bullish medium-term view alongside the shorter-term bullish outlook.

A break below $1.2324 would be a signal that we are reversing lower for the pair and until then, a break through trendline resistance could set us up for further upside in line with recent gains.

GBP/USD price chart

GBP/USD price chart

AUD/USD back at crucial resistance zone

AUD/USD has managed to break back into a crucial trendline resistance, which coupled with a raft of historical peaks, makes for a pivotal area of trade. Currently we are seeing the pair start to turn lower, which seems likely to persist, even if just for the short term.

However, the true signal we are looking for is an hourly close below $0.7663, which would start to look like we are going to see the pair reverse lower. Until then, this area is crucial for either a breakout or reversal. Thus it makes sense to look for signal in either direction to show us where the next move is. For now, we haven’t seen anything to undermine the recent rally. 

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