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

EUR/USD and GBP/USD look primed for further upside following a strong early part of the week. However, with AUD/USD consolidating around Fibonacci resistance, we could see the pair move lower.

australian dolar
Source: Bloomberg

EUR/USD rallying from key support level

EUR/USD is moving higher this morning, with the $1.0855 support level holding once more overnight. We are trading within a descending triangle formation over the past week, coming off the back of a sharp rally in response to the French election result. The pair is expected to gain further ground in the near future, but we need to ascertain whether we are going to retrace some of that major weekend gap or not.

As such, look out for an hourly close below $1.0855 for a bearish short-term view, whereas an hourly close above $1.0933 would point towards another leg higher for EUR/USD.

GBP/USD breaking higher once more

GBP/USD is pushing through the $1.2905 resistance level and into a near seven-month high this morning. This has been coming over the past 24 hours, and now that it is happening it looks likely we will see a strong morning for the pair.

With that in mind, the bullish outlook remains in place until we move back below the prior swing low (currently $1.2756).

AUD/USD rallies into Fibonacci resistance

AUD/USD has been regaining ground overnight, following a strong move lower yesterday. This is in line with the downtrend we can see in both the longer term and throughout the last week. Given the rally back into the 76.4% retracement, this looks like a good area to get short for a move back below $0.7440 once more.

Conversely, a break back above the $0.7492 level would negate this bearish view, pointing towards a potential move back towards the $0.7530 region.

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