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

Upside in EUR/USD, GBP/USD, and AUD/USD looks like it could be fleeting, with further downside looking likely before long.

Source: Bloomberg

EUR/USD rallies into trendline resistance

EUR/USD has continued its decline this week, with the price falling back in the recent weeks. The wider outlook is somewhat mixed, because while the two months have seen the longer-term creation of lower highs and lows, we have recently seen a break through $1.1836 to muddy the picture.

The bullish outlook would truly come back with a break above $1.1879, yet for now it is worthwhile being open-minded on the notion that we could break higher once more. The recent turn lower has seen the price rally into trendline resistance, with the 61.8% also coinciding with that line. We would need to see a break through $1.1808 to negate the recent weakness, and until then there is a good chance of further downside to continue the recent trend. 

GBP/USD grinding higher within wider range

GBP/USD has been gaining ground over the past 10 days, with the price trading within an ascending channel. With the prices continuing to create short-term higher highs and lows, it will be clear when they turn this area, with a break below the $1.3209 swing low providing a bearish signal.

While we could see further upside, it is worthwhile noting that the pair has been trading within a $1.3030-$1.3321 range for over a month now. As such, short-term upside could be fleeting, with the potential for short positions coming into play, should we see further upside.  

AUD/USD turning lower from Fibonacci level

AUD/USD rallied back towards trendline resistance overnight, with the price respecting the 76.4% level, and turning to the downside.

With that in mind, there is a strong chance that this downtrend will persist with a break back below $0.7533. Therefore, a bearish outlook remains as long as we do not see the price break the $0.7608 level. 

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