FX Levels to Watch – EUR/USD, GBP/USD, AUD/USD

Dollar strength is making itself felt, as the euro heads lower, with more hawkish Yellen helping it along the way.

Dollar and pound
Source: Bloomberg

EUR/USD continues its fall

Yesterday saw EUR/USD drop below $1.18, with the loss of key support at $1.1823 providing sellers with the momentum to push the pair lower. The next support looks to be the mid-August low at $1.1662.

As noted yesterday, rallies back to even $1.20 will still be selling opportunities, with a move above $1.2007 needed to indicate a new leg higher is underway.

GBP/USD looks to bounce

Continued USD strength is causing a further retracement in GBP/USD, with the pair heading back towards $1.3268 (the early August high). The uptrend is still intact, but we can expect some additional downside here, unless a reversal back above $1.3427 occurs.

This would then prompt another move towards the high of last week above $1.36.

AUD/USD takes further losses

AUD/USD has been dealt a blow over the past two weeks. The pair is now heading towards the support zone seen in early August (around $0.7807-$0.7849) when the price bounced.

A break below here would head towards $0.77 or lower. A recovery would then target the $0.8075 area, the peaks of the summer.

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