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

EUR/USD, GBP/USD and AUD/USD are all starting to find strength following recent declines, with key support coming into play once more. 

EUR/USD tumbles back into support

EUR/USD has sold off into the $1.1822 support level once again, with the dollar coming back into strength. This is certainly a crucial area of support to watch out for as a source of a possible bounce.

Below that, there is also the 76.4% retracement to watch out for. The wider perspective portrays a picture of a market which does have the potential to reverse the uptrend that has been in place since the beginning of 2017. However, until we see a break below $1.1554, there is also a chance we will see EUR/USD turn higher once more to continue that long-term trend. The reaction to the $1.1790-$1.1822 support zone will be very telling in answering the question of where we go from here.

GBP/USD broadening formation remains in play

GBP/USD continues to trade within a broadening formation, with the price finding support on a descending trendline yesterday.

This points towards short-term upside, with the consolidation phase expected to remain in play for now. With that in mind, watch for short-term upside into $1.3607 resistance to continue the recent sideways price action. A break through trendline support or resistance would provide a breakout signal, but given the expanding nature of this pattern, there is a chance that these lines will become less relevant over time.

AUD/USD turning higher from Fibonacci support

AUD/USD is turning higher from the 76.4% retracement today, following on from a fleeting break above $0.7561.

That shift away from the creation of lower highs and lower lows points towards a potential reversal for the pair, and today’s rebound from Fibonacci highlights that we could see a more bullish phase come into play. As such, watch for a possible push upwards from here, where a break back below $0.7449 would bring about a less bullish outlook.

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