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

So far there is little sign of an end to losses for cable and Eurodollar, but the Aussie has encountered a key area that may mark a turning point.

Pound coin and dollar notes
Source: Bloomberg

GBP/USD heading lower
Further losses for cable last week confirm the downtrend, but for now, the $1.4350 level is holding as support, with the pair oversold intraday. Bears may therefore want to wait until a rally materialises, perhaps up towards $1.4450.

A close above $1.45 would likely turn the pair bullish, but for now selling into strength with a target down towards $1.42 would seem to be the approach. 

EUR/USD struggles to reverse downtrend
With the downtrend still in effect last week, the current move higher may well resemble another selling opportunity, so as long as the pair holds below $1.14 it should be regarded as a sell.

A break below the 50-day simple moving average (SMA) ($1.13) would indicate that a move to the lows of April just above $1.12 is underway. A rally needs to clear $1.14 and move on above $1.1450.

AUD/USD in the balance
The pair has encountered the 200-day SMA ($0.7260), and if it can hold here then a rally may be possible. However, it needs to move above $0.7365 soon to confirm this.

A close below $0.7350 would indicate that more losses are on the way, with a target down towards $0.7161. 

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