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

The dollar comes under pressure, as gains across EUR/USD, GBP/USD and AUD/USD look set to pave the way for further upside.

EUR/USD punches to March high

EUR/USD has hit the highest level since mid-February, with the price clearly reversing higher amid the recent creation of higher highs and higher lows.

There is a strong chance that we will see the pair pull back at some point, yet as long as the price remains above the $1.2285 swing low, there is a good chance that any such downside would be a short-term retracement before we push higher. As such, a bullish outlook remains in place unless the price falls below $1.2285.

GBP/USD pullback unlikely to last

GBP/USD is pulling back this morning, with the price turning lower after hitting the highest level in seven weeks. This recent uptrend is likely to remain intact for now, with a break below $1.4070 required to negate the idea that we are simply seeing a short-term retracement before we move higher again.

With that in mind, look out for the four-hour simple moving average (SMA) middle Bollinger band as support, with the price expected to move higher. A break below $1.4070 would not necessarily provide a lasting bearish tone, with such a move pointing towards a retracement of the wider move starting from $1.3711.

AUD/USD rallying from trendline support

AUD/USD has moved higher from trendline support over the past week. The slow nature of this recovery is a worry for bulls, and a more positive picture would come with a break above $0.7785.

Conversely, a break below $0.7712 would be a worry for this short-term ascent. With that in mind, a tentative bullish immediate view remains, unless we see a break below the near-term intraday swing low of $0.7712.

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