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

The dollar is losing ground after the Republicans lost control of the House of Representatives. With EUR/USD, GBP/USD and AUD/USD all pushing into deeper retracement levels, could this be the beginning of a wider bullish shift?

EUR/USD pushing upwards amid dollar weakness

EUR/USD has been pushing higher, in a continuation of the strength seen throughout November thus far.

With the price rising through the 50% retracement, there is a strong chance we will see the pair continue to gain ground over the near term. A break through the $1.1622 mark would be required to bring about a wider bullish outlook for the pair. Until then, watch for a move into the deeper Fibonacci retracement area of $1.15 and potentially $1.1546.

GBP/USD pushes past Fibonacci resistance

GBP/USD has managed to regain a significant amount of ground, with the combination of a more hawkish Bank of England (BoE) outlook coupled with a post-midterm election decline in the dollar helping push the pair past the 76.4% retracement. That raises the chance of a wider bullish breakout above $1.3258.

However, until we see that, there is still a chance of the pair turning lower to continue the wider creation of lower lows in play.

AUD/USD continues to regain ground

AUD/USD has turned higher once more, despite the initial respect of the 76.4% Fibonacci resistance. The long-term downtrend remains intact unless we see a break through the $0.7315 swing high.

However, with the price having broken through both trendline and now Fibonacci resistance, we are increasingly seeing a wider turnaround as a possibility. With that in mind, we are in a position where there are both bullish and bearish factors in play. However, a break through $0.7315 would bring about a clearer and bullish picture for the pair.

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