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

The dollar rally appears to be abating, with EUR/USD and AUD/USD gaining ground. Meanwhile, with GBP/USD heading towards the upper end of its range, there is reason to believe we will see upside to come should the price break higher.

EUR/USD regaining ground after trendline break

EUR/USD seems to be moving into a more bullish phase, following on from the declines evident throughout the final week of April and the first week of May.

The break through trendline resistance has set the pair on its way to the current gains, with the creation of higher highs and higher lows key to providing a bullish short-term view. As such, a bullish view remains while the price is above Friday’s swing low of $1.1891.

GBP/USD consolidation continues as we await breakout

GBP/USD continues to move sideways following on from a period of downside that lasted through the second half of April. With the price having traded largely sideways for over a week now, there is a chance we could see the pair start to turn into a more bullish phase should the breakout come to the upside.

With that in mind, watch for a break through $1.3618 as a potential bullish signal. However, with the recent price action taking on a broadening formation, it makes sense to also look out for trendline support and resistance.

AUD/USD testing key resistance level

AUD/USD has managed to rebound sharply after breaking below a wider head and shoulders neckline. The key to this recovery was always going to be centered on the ability to break above the $0.7561 swing high.

With the price challenging that resistance level since Friday, the ability or inability to break above here will provide us with a clear short-term bias for the pair. 

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