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

Potential reversals for the likes of EUR/USD, GBP/USD and AUD/USD point towards a possible period of weakness for the dollar.

Australian dollar
Source: Bloomberg

EUR/USD showing signs of bottoming out

EUR/USD is regaining ground this morning, with the pair showing signs of a bullish reversal after recent losses. The $1.1804 -$1.1810 resistance zone is going to be important as a hurdle which, if overcome, could pave the way for a period of upside.

As such, look out for an hourly close above $1.1810, which if achieved would provide a bullish outlook. Should that occur, a break below $1.1772 would be required to negate that bullish view.

GBP/USD pullback likely to be fleeting

GBP/USD has been pulling back overnight, following a sharp move higher yesterday. Given the failure to break through $1.3464, there is less confirmation of a bullish reversal than would be preferred. Yet with the pair heading higher from the 61.8% retracement, it looks as though we could be seeing just that.

An hourly close above $1.3454 would provide a bullish confirmation, given the creation of higher lows and highs. As such, the directional bias will be greatly influenced by the break out of the $1.3343-$1.3454 zone. 

AUD/USD reversal looking to take shape

AUD/USD has regained its composure following a drop into a crucial long-term support zone. With the pair now respecting the $0.7835 level, there is a strong chance that we will see a move higher from here. In particular, an hourly close above $0.7860 would provide a bullish confirmation signal.

A break back below $0.7799 would certainly be a big warning sign, yet for now there is confidence in the strength of $0.7835 support given both recent and historical respect of this level. 

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