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

Weakness across EUR/USD, GBP/USD, and AUD/USD could be short term in nature, given wider bullish picture.

EUR/USD continues to weaken within wider retracement

EUR/USD is turning lower once more this morning, as the pair looks set to head towards the 76.4% retracement at $1.1771. The ability to post an hourly close below the 61.8% ($1.1808) mark would point towards a possible deeper retracement.

However, we would need a move below $1.1712 to negate the wider uptrend, and as such, while we could see further downside in the near-term, there is a good chance we could see the price move higher before long.

GBP/USD continues to tracks lower

GBP/USD is also turning lower, following a series of lower highs since Thursday’s peak. This looks like a possible retracement, with the possibility of longs at deeper retracements.

However, for now it looks likely that we will see further downside, with a break above $1.3461 required, to negate the short-term bearish view. 

AUD/USD falls into Fibonacci support

AUD/USD sold-off overnight, with a disappointing gross domestic product (GDP) figure proving a drag. The ability to remain above $0.7551 will be key here, with a bullish view in place for a bounce from the 76.4% retracement ($0.7575).

The recent trendline break, and creation of higher highs points towards a potential bullish reversal from here. Alternately, should we break below $0.7551, it could point towards a continuation of the bearish story seen over recent months.

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