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

Continued dollar weakness has given EUR/USD, GBP/USD and AUD/USD space to rally, but can they keep up the good work?

Dollar and pound
Source: Bloomberg

EUR/USD rally goes on

EUR/USD finds itself back above the 50-day simple moving average (SMA) at $1.1847, marking a significant recovery from the lows of a week ago. The next area to watch would be $1.19, and then above here the September peak around $1.21.

Momentum looks potentially overstretched on the four-hour chart, and move back below $1.1830 would signal a more bearish development. 

GBP/USD faces a crucial moment

For GBP/USD too, the rally off the lows has been impressive, but the pair finds itself stuck below the highs of last week at $1.33. A failure to push on from here would suggest a fresh selling opportunity has developed.

Meanwhile, above $1.33 the $1.3450 level comes into play, and then the September highs around $1.3650.

AUD/USD looks to recent highs

AUD/USD continues to clamber higher, with its eye on the highs of last week at $0.7877.

A failure to take out this high will create a new lower high, with the bears then targeting the $0.7748 low from the beginning of this week. Above $0.7877, the 50-day SMA at $0.7913 comes into focus. 

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