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

Dollar strength appears to be abating, with gains for cable and the Aussie.

Australian dollar (AUD)
Source: Bloomberg

EUR/USD fights to create a new high

The rally from last week’s lows goes on for EUR/USD, with the potential for further gains should the price move on above $1.1790.

A close above here targets $1.1830, and then on to $1.1880, but a turn lower would reignite the downward move and head towards $1.1662.

GBP/USD maintains its upward move

GBP/USD has solidified its gains from yesterday and is pushing higher. We still need to see a move above $1.33 to create a new higher high in the downtrend off the September highs, but for now the buyers appear to be in charge.

Above $1.33, the $1.3427 and then $1.36 levels come into play.  A turn lower back below $1.3050 would suggest a drop to the late August low at $1.29.

AUD/USD holding key support

AUD/USD has bounced off the $0.7748 level that was major resistance back in the first quarter (Q1). If it holds this level, the next area to watch is $0.7877, which is the high from last week.

A move above here would cement the idea that the drop from the August highs has run its course. A close below $0.7748 would suggest a bigger drop to $0.7713 and then $0.7641. 

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