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

EUR/USD, GBP/USD, and AUD/USD are turning lower, with the wider dollar strength story coming into the forefront once more.

EUR/USD turning lower after deep retracement

EUR/USD rallied into 200-simple moving average (SMA) resistance on Friday, with the pair turning lower ever since. This coincides with the 76.4% retracement level, with the price moving lower since reaching that zone of resistance.

Given that this rebound came from the crucial $1.1510-$1.1554 zone, we are still trying to ascertain whether we are seeing the start of a wider rebound, or a continuation of the downtrend seen throughout April-May. For the answer, we will need to see a break below $1.1510, or above $1.1852. Until then, it looks likely that we will head lower towards the $1.1554 region, with a break above $1.1721 providing a more bullish short-term signal.

GBP/USD turning lower from Fibonacci and trendline resistance

GBP/USD is also weakening after resurgent strength seen late into last week.

The price subsequently rallied into the confluence of resistance between the 61.8% Fibonacci level and descending trendline. With the stochastic turning lower from an overbought position, it seems the momentum is pointing towards downside to come.  As such, a bearish outlook remains in play unless we see a break above $1.3315.

AUD/USD turning lower following deep pullback

AUD/USD is also weakening after a recent rebound, with the pair moving in between the 61.8% and 76.4% retracement zones before starting to reverse back onto the bearish trend.

A break above $0.7444 would signal a potential bullish shift for the pair, with the existence of a notable historical support level at $0.7329 providing some reasoning behind the notion we could see such a move. However, until then there is a good chance we will see the downtrend come back into play. For greater confidence over that bearish continuation, a break below $0.7323 would point towards further downside to come.

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