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

The dollar is regaining some ground after a sharp decline across the board. Is this the beginning of a wider bearish picture for the dollar, or just a blip?

EUR/USD pulling back after recent bullish break

EUR/USD has been moving lower since Friday morning, coming off the back of a trendline breakout. The fact that we saw a move that barely even reached the 50% level points towards the possibility of further upside.

With that in mind, the current pullback looks like a short-term retracement before we turn higher once again. A break below $1.1302 would negate that bullish short-term view.

GBP/USD weakening from confluent resistance

GBP/USD managed to push sharply higher towards the end of last week, with the price rallying into Fibonacci and moving average resistance. That confluence of the 61.8% retracement, alongside the 200-day simple moving average (SMA), provides a potential turning point for the market.

That being said, there is still room for further upside over the near term, with a strong possibility of a rally into the 76.4% retracement ($1.3125). Much of the direction in the pound is going to be influenced by political wrangling over Brexit, and thus keep an eye out for any new comments from the UK or EU. For now, watch for another potential move higher, with a break through $1.3043 required to point towards another move higher.

AUD/USD weakens from Fibonacci resistance

AUD/USD rallied into the 76.4% retracement last week, with the pair moving lower since. The trendline breakout seen recently points towards a possible bullish reversal for this pair, yet we would need to see a move above $0.7315 to provide greater credence to that idea.

Until then, it is worthwhile noting the ability to reverse lower from here, with a break back above Friday’s peak providing greater confidence for the bulls.

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