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

Sterling remains under pressure, while the Aussie has so far refused to budge from its broader uptrend.

Euro
Source: Bloomberg

GBP/USD

It hasn’t exactly been a great week for shorts, but the ‘sell the rally’ approach still has merit. Continued weakness could see a move to the July lows of $1.28, and even a sustained rally would provide an attractive moment for fresh short positions.

Upside is likely to be contained in the short-term by the $1.34 level for IN_GBPUSD.

EUR/USD

Weakness this morning around $1.12 reflects skittishness around yesterday’s highs, but it has yet to turn into something more concrete. The pair could be about to give up the post-January uptrend, but for now dips should still be bought.

It would take sustained price action below $1.10 to really indicate that a new trend was in place.

AUD/USD

The rally enjoyed a good session yesterday, although it finished off the highs. Nonetheless, until the price moves back below $0.7650 shorts should be careful.

The upside target remains the mid-May high around $0.7840 for AUD/USD.

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