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

The dollar is back in charge, with recent rallies likely to fade once again for EUR/USD, GBP/USD, and AUD/USD.

EUR/USD looks to turn lower once again

EUR/USD has been gradually regaining ground throughout the back end of Friday and beginning of trade today.

However, this looks to be on borrowed time, with the recent downtrend likely to kick in once again. The current candle raises the likeliness of a bearish engulfing formation, pointing towards a potential breakdown from here. As long as we do not break back up through $1.2210, a bearish outlook remains.

GBP/USD approaches critical support level

GBP/USD is also turning lower once more this morning, although on this occasion the pair has seen little in the way of rebounds following the decline of last week.

The price is currently challenging Friday’s low of $1.3747, which is the near-term support to look out for. However, the key level to watch is the $1.3712 low from early March. A break below there would provide a double top formation, undermining a long-term uptrend in place since late 2016.

AUD/USD turning lower after deep retracement

AUD/USD is similarly selling off once again, with Friday’s gains proving fleeting amid a recent downtrend.

The crucial level to watch to the upside is $0.7589. A bearish short-term picture remains unless we break above that level. Until then, the recent decline is expected to continue, with the $0.7501 low in view. That support level is going to be absolutely crucial given a break below there would negate a downtrend in place since early 2016. 

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