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

The euro’s brief bounce has subsided, while the Aussie is hoping to break higher and continue its January rally.

EUR/USD bears maintain their grip

Yesterday's EUR/USD rally to $1.20 was rapidly countered by heavy selling, which suggests further downward pressure will materialise.

Earlier in the week, $1.1915 acted as support, so a push through here opens the way to $1.1850 and then $1.1725. However, before this is reached the rising trendline from the November lows comes into play. 

GBP/USD aims for a rebound

Sterling weakness has dominated over the past few days, so we continue to look for more downside for GBP/USD, even within the context of a broader uptrend.

As the price pushes lower, $1.3466 and then $1.3341 come into play. However, the uptrend remains intact, so any higher close would be regarded as creating the new higher low that points towards a fresh rally. 

AUD/USD aims for a breakout

Dip buyers got their chance yesterday, as the price for AUD/USD fell back to $0.7807, before moving on.

An attempt to move above the highs from earlier in the month was defeated overnight, but a close above here would put fresh momentum into the uptrend, with $0.7897 and then $0.7939 coming into view. 

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