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

Cable has continued its recovery off the Monday lows, while the euro is building a base against the US dollar. 

Pound coin and dollar note
Source: Bloomberg

GBP/USD pushes on

Since Monday’s lows the pair has managed to move 150 points higher, testing the water above $1.23 for the first time in a number of sessions. Having seen a drift lower from the overnight highs, we may see buyers enter the fray, although UK unemployment data will likely keep some on the sidelines.

Nonetheless, so long as $1.2150 holds the pair has a base on which it can build, and may well push on above $1.23, with a close above $1.2322 targeting $1.2477.

EUR/USD runs into support

Although still stuck in a downtrend, the pair has run into a clear support zone just above $1.0950. If this holds we could see a move back to $1.1020, the overnight high between Monday and Tuesday, and then on towards the peak last week at $1.1060.

A move below $1.0950 could see a rapid drop to the March lows of $1.0820.

AUD/USD seeks bullish momentum

Having run right into resistance along the descending trendline, AUD/USD now needs to find the bullish momentum to stage a breakout, ideally with a close above $0.77.

If this fails to materialise then we could see a turn lower, back down to the rising trendline off the January lows.  

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