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

Recent EUR/USD, GBP/USD, and AUD/USD upside looks to be providing us with a good shorting opportunity, given the wider downtrend in play across all three pairs. 

EUR/USD rebound unlikely to last

EUR/USD has been pushing higher over the past week, reversing much of the downside seen throughout the first two weeks of the month.

With the price having gained so much, it looks likely that we are seeing a retracement of the wider deterioration from $1.1746. Thus, while this rebound is impressive, it is not expected to last. As such, while we could see another short-term bounce, a bearish outlook is in play now that we have seen the price move into the 61.8% to 76.4% retracement zone.

GBP/USD rebound likely to provide selling opportunity

GBP/USD has similarly been gaining ground over the past week, with the price approaching the 50% Fibonacci retracement overnight.

There is a good chance we could see further upside over the near term. However, this looks like a retracement of the $1.3212-$1.2661 decline, and thus it makes sense to look for the pair to turn lower from Fibonacci or trendline resistance.

Selling expected after deep AUD/USD rebound

AUD/USD managed to rebound into the 76.4% region yesterday, with the pair providing a similar bounce to that seen in EUR/USD and GBP/USD.

Given the wider downtrend in play, we are likely to see the pair turn lower before long. With that in mind, a bearish view is in play unless the pair rally through the $0.7453 swing high.   

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