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

GBP/USD leads the way higher, at a time when the dollar is showing mixed signs across the board. Meanwhile, a rally in AUD/USD looks unlikely to last.

Euro notes
Source: Bloomberg

EUR/USD consolidation continues

EUR/USD is continuing to trade sideways, following a rally into the 76.4% retracement on Monday. The long standing downtrend remains intact despite the gains over the past month. Thus it is worthwhile noting that we could soon start seeing the pair turn lower.

A bullish medium term outlook would only come with a break through $1.0874. In the meanwhile, watch out for a potential break below $1.0710 for a bearish short-term signal. 

GBP/USD continues to gain ground

GBP/USD is pushing higher once more, with precious few major resistance levels to contend with. This looks likely to continue, with a break back below $1.2491 required to undermine this recent rally.

To the upside, watch out for resistance at $1.2728 and $1.2775. Until then, it makes sense to buy on dips.

AUD/USD rallies into Fibonacci resistance

AUD/USD has managed to regain some ground overnight, rallying into the 76.4% retracement before turning lower. Given the trendline break and push below the $0.7553 level yesterday, this rally looks like a precursor to further downside.

As such, a bearish view is in play unless we see a break back above $0.7609.

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