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

The likes of EUR/USD, GBP/USD and AUD/USD remain in an uptrend, yet with big resistance ahead, are we going to see the short-term trend reversed?

Euro note and pound coin
Source: Bloomberg

EUR/USD pushing higher once more

EUR/USD is breaking through Friday’s high of $1.0782, with the pair passing the trendline resistance this morning. The key hurdle to overcome here is $1.0829. A break through that level would bring a bullish medium-term outlook for the pair.

Until we do break through that level, there is a chance we could pull back. However, the short-term uptrend remains intact, with the $1.0829 level the key point of reference over whether this rally will continue.

GBP/USD starts to weaken at trendline resistance

GBP/USD sold off sharply from the trendline resistance yesterday, following a strong rally throughout last week.

Despite pulling back last night, the pair has not broken below the $1.2324 thus the short-term uptrend remains intact. As such, an hourly close below $1.2324 would be required to provide the bearish outlook view that yesterday’s sell-off alluded to.

AUD/USD pullback fails to break support level

AUD/USD weakened overnight, following a more dovish outlook from the Reserve Bank of Australia in its minutes. That move lower failed to take out the key $0.7664 level and, as such, the short-term uptrend remains intact.

The pair has moved into a crucial long-term trendline resistance, which will be pivotal in determining the medium-term outlook for this pair. An hourly close below $0.7664 would look bearish, but until that happens, there is a good chance we could still move higher. 

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