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

The dollar is back with a bang, as GBP/USD, EUR/USD and AUD/USD all show signs of weakness. Could this be the beginning of a wider reversal?

Pound and dollar
Source: Bloomberg

EUR/USD breaking lower after recent resurgence

EUR/USD has broken below the key $1.1748 level this morning, in a surprise move that points towards a potential period of weakness for the pair. Crucial to that story is the need to break below the $1.1689 level. Until that happens there is a chance we could see a rebound as a deep retracement of the $1.1689-$1.1847 move.

So far we are seeing the 76.4% respected, and as such it makes sense to be mindful of the potential to rally from here. Conversely, a break below $1.1689 would have bearish implications for the medium term.

GBP/USD back at key support

GBP/USD has sold off below the $1.2952 support level this morning, following a second rally into the 76.4% retracement.

The key here is whether we can see a break below $1.2932, which would point towards a wider bearish picture developing. 

AUD/USD tumbles into historical support zone

The pair has followed the wider theme of dollar strength, with the recent signs of resurgence being negated by a drop back below the $0.7835 level. This takes the price into a key historical zone of resistance, which would be expected to act as support this time around.

That being said, we would need price action to guide us, and as such a bearish picture is back in play unless we break back above $0.7919.

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