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

Recent gains for EUR/USD, GBP/USD and AUD/USD are coming under pressure, with initial signals of a potential bearish shift coming into play.

EUR/USD weakening from Fibonacci resistance

EUR/USD is drifting lower in the wake of a rally into the 76.4% retracement at $1.1771. Following a rally above $1.1721-$1.1727, there is a growing story of a potential bullish break, with a rise above $1.1852 providing greater confidence of such a move.

With the initial respect of the Fibonacci retracement, there is a chance of a weaker picture coming into play for the near term should we fall below $1.1690.

Will the GBP/USD rally run out of steam?

GBP/USD is gaining ground this morning, coming off the back of a move into the 61.8% retracement yesterday. While we have clearly gained ground over the past fortnight, the fall below $1.3204 on Monday raises questions over this current rally.

With that in mind, there is a possibility we could look for shorts around the 61.8% or 76.4% retracements ($1.3297-$1.3322). A break above $1.3363 would negate that bearish possibility.

Will AUD/USD trendline break signal bearish shift?

AUD/USD has dropped into a 61.8% Fibonacci support level overnight, coming off the back of a trendline break. That trendline break could provide a warning sign that we are set for a reversal lower following the recent period of strength.

A break below $0.7361 would provide confirmation of that bearish shift. Until then, there is a chance we could see a rebound from Fibonacci support.

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