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

Dollar strength appears to be in control for EUR/USD and AUD/USD over recent days, while the pound has enjoyed a sharp surge at the hands of a hawkish Bank of England.

Pound and dollar
Source: Bloomberg

EUR/USD rebounds, yet will it last?

EUR/USD has regained ground overnight, following a sharp fall below the 76.4% retracement. That move has heightened the chance that we are seeing a bearish reversal.

For that bearish shift to be confirmed, we would need a break below $1.1823, while a move back above $1.1995 would raise the likeliness of a bullish continuation.

GBP/USD breaks to new 14-month high

GBP/USD rallied sharply off the back of yesterday’s Bank of England (BoE) meeting, pushing the price into a crucial resistance level. The ability to break above the $1.3445 resistance level will be key to today’s outlook.

With that September 2016 high marking a huge resistance level, watch out for how the pair acts at this level for a clue as to how it will trade going forward. 

AUD/USD near key trendline resistance

AUD/USD has been closely respecting a key descending trendline over the past 24 hours, with the reaction to this line key to today’s direction. Clearly the recent trend is to the downside, which points towards a potential move lower from here.

However, should we see an hourly close above $0.8016, then it would point towards a bullish resurgence for the pair. 

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