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

Further losses for EUR/USD have been matched by a revival of the current rally in AUD/USD.

Euro note
Source: Bloomberg

EUR/USD facing more reductions

Further declines here have put the pair back below the low seen a week ago at $1.0521. Now there is little support until the price moves to $1.04450 and then $1.0370.

Overnight gains faltered below $1.0560, so this is the first area to watch, but, realistically, the bulls will need to get the price back above $1.06 to suggest the downward move is in order.

AUD/USD up again

It looked like we had seen the end of the bounce here, but the buyers have come in once again, putting the pair back above $0.77. The relative strength index continues to decline on the daily chart, but momentum continues to drive the flow here.

The next target is $0.7727, the peak from last week, and then above this we have the $0.7787 high from November. The real test for the bears would be a drop back to $0.7610, and only a firm move below this would signal a bigger turn lower.

USD/CAD eyeing January peak

The pair has been boosted by comments about a potential March move for the Federal Reserve, allowing it to maintain the momentum after a double bottom last week around C$1.3029.

Yesterday’s highs around C$1.3160 offer some potential stumbling blocks, but beyond this the next move would be to C$1.32, and then to the late January peak at C$1.34.

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