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

Dollar strength is hitting the pound and the euro, while the Aussie is enduring a spot of profit-taking.

GBP/USD forex pair
Source: Bloomberg

GBP/USD may move lower
The $1.44 level has proved too much for IN_GBPUSD this week, and with a drop this morning we may be seeing the start of a bigger move lower.

A break below yesterday’s low of $1.43 would ignite a move to $1.4230, and then down towards $1.4050, the lows from earlier in the month. The pair would need to close above $1.44 to be in with a chance of challenging the mid-March high at $1.4520. 

EUR/USD suffers from sudden movements
Euro traders can be forgiven for feeling a little shell-shocked today. Wild gyrations in the price saw the pair try to push back above $1.14, but fail. Now the move lower appears to be underway once more.

The next target would appear to be the 50-day simple moving average (SMA) at $1.1185, while below this the pair will target $1.1063 and the 200-day SMA. Sell the rallies still appears to apply here.

AUD/USD ready to turn
After bouncing for the past two weeks, AUD/USD appears set for a turn lower. As with indices, the daily relative strength index and stochastics have turned negative, so selling into strength would make sense.

With intraday momentum indicators oversold it may be wise to wait for a bounce, but ongoing weakness should target $0.7662, and then on towards $0.76 itself. 

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