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

The dollar continues to gain, with EUR/USD and GBP/USD moving sharply lower. Meanwhile, gains for AUD/USD look unlikely to last.

Australian dollar
Source: Bloomberg

EUR/USD heading lower once more

EUR/USD is turning lower yet again, following on from a rebound from the crucial $1.1689 support level yesterday. That level will once again be key to price action and our outlook today, with the ability or inability to break below $1.1689 crucial to understanding whether this is the beginning of a period of weakness for the pair.

As such, watch out for an hourly close below the $1.1689 level for a bearish signal, while a failure to do so, followed by an hourly close above $1.1758 would signal a bullish shift.

GBP/USD turns lower in bearish continuation signal

GBP/USD weakness looks set to continue this morning, after a shallow retracement took us swiftly lower.

An hourly close below $1.2846 would provide a bearish signal, where the shallow depth of the swing high provides us with a close area for stops, above $1.2878. The next key support level comes in at $1.2811.

AUD/USD rallies into Fibonacci retracement

AUD/USD has strengthened overnight, following a fall into a key historical support zone. The price rallied into the 76.4% retracement, and given the dollar strength story we are seeing across the board, coupled with the recent downtrend, it makes sense that we see this pair move lower once again from here.

A bearish outlook remains unless we see a break back up above $0.7877.

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