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

AUD appears to be the outperformer, with AUD/USD looking bullish amid gradual weakening of EUR/USD and GBP/USD.

EUR/USD notes
Source: Bloomberg

EUR/USD rallying towards wedge top

EUR/USD has been regaining ground over the last 24-hour period, with the price breaking higher off the back of a fake-out below $1.1689.

Crucially we are now seeing a falling wedge in play, which could allude to a break higher from here. In any case, we would need to see an hourly close above $1.1790 to bring a more bullish short-term view. Until then, there is a good chance we could see another move lower from here.

GBP/USD consolidating above key support level

GBP/USD has been consolidating since the sharp move lower seen on Tuesday. Given the recent downtrend, it looks likely we will see another move lower before long.

However, it is worthwhile noting that there is a crucial support level at $1.2811, which must be broken before this short-term view translates into a wider picture. In any case, a break above $1.3030 would be required to negate the recent downtrend.

AUD/USD breaks back into bullish outlook

AUD/USD has managed to break through the crucial $0.7919 resistance level this week, following a brief foray into the crucial $0.7732-$0.7835 support zone. This morning looks to be punching higher, creating a higher low to match that higher high.

A break above $0.7962 would solidify the notion that this market has bottomed out once more. However, further upside looks likely from here, unless we break back below the $0.7800 region.

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