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

Sterling has suffered heavy losses in early trading, while the Aussie dollar is aiming to push higher after a move down overnight. 

Euro and dollar notes
Source: Bloomberg

GBP/USD falling after Scottish referendum news 

The initial reaction to the Scottish referendum news was barely a shrug, indeed GBP/USD actually rose slightly, but it appears a different mood prevails this morning.

The price has fallen sharply, back below $1.22, and is testing the lows of last week around $1.2130. Rising support from the flash crash lows of October could come into play, but it will need a push back above $1.22 to reverse the expectation of further losses. Below $1.21 the pair would target $1.2034 and then $1.1934. 

EUR/USD unable to move up

The sharp pullback goes on here, with EUR/USD finding some support at the 50-day simple moving average ($1.0633), but so far it is showing little ability to move back above $1.07.

The $1.0620 area continues to hold, so bulls may look to re-enter around this level. A drop back below $1.0620 would suggest a further decline, perhaps down to the vital $1.0520 area that held during the first days of March.

AUD/USD trying to push up

The rally that began on Friday and continued into Monday ran into some selling overnight. With the price having now worked off its overbought condition, and a higher low at $.07540 having been established, we may now see a push higher.

The AUD/USD needs to move above $0.76 and ideally take out $0.7620. A close below $.07540 would likely negate the bullish outlook and suggest a move to the lows of last week below $0.75.

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