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

The dollar looks set for further downside, with EUR/USD, GBP/USD and AUD/USD all breaking through crucial resistance levels.

EUR/USD breaks through crucial resistance level

EUR/USD managed to push through the $1.1721-$1.1727 resistance on Friday, completing a double bottom pattern that has been coming together over the past three weeks.

This points towards a heightened chance of a rally above the crucial $1.1852 level, which would signal a more substantial bullish outlook for the pair. Interestingly, we are seeing the price hold up at the 76.4% retracement of the wider $1.1852. Be aware of a potential pullback at this level, yet a break above here will give greater confidence of a push above $1.1852, and a continuation of recent gains.

GBP/USD pushes through key swing high

GBP/USD has also managed to break through a crucial resistance level, with the push above $1.3315 signaling the potential for a bullish phase for the pair.

With the price currently trading at trendline resistance, there is a hurdle to overcome for the near term. However, it looks likely we will see a more bullish phase in play. A break below $1.3204 could undermine that bullish signal, but, until that happens, further upside looks likely.

AUD/USD breaks key resistance level

AUD/USD has managed to rally through the $0.7444 swing high, paving the way for further upside to come.

The pair is likely to remain within a bullish phase for now, seemingly set for a period of upside. This could be a retracement, or perhaps something bigger. However, even if we are looking at a retracement, there should be further upside to come, with the 61.8% at $0.7536, and the 76.4% retracement up at $0.7590. 

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