FX levels to watch: EUR/USD, GBP/USD and AUD/USD
EUR/USD and GBP/USD are recovering, but AUD/USD is sounding a warning signal for the rebound in risk assets.
EUR/USD still in trend channel
EUR/USD continues to cleave to the rising channel, although we have yet to see a significant bounce.
Yesterday saw the index hold the $1.134 area. If this remains the case, the bullish view suggesting a bounce back towards $1.15 remains in place. A close below $1.134 brings horizontal support at $1.13 into play.
GBP/USD eyes up $1.30
Employment figures yesterday bolstered GBP/USD, reviving the uptrend. A fresh push above $1.30 will mark a bullish breakout, targeting $1.304 and then $1.32.
A firm move below $1.28 is needed to suggest that the sequence of higher lows has been broken.
AUD/USD keeps on declining
AUD/USD continued its downward move yesterday, providing further evidence that global risk appetite is waning.
A rally off the lows yesterday is faltering at $0.714, creating a lower high. Further declines target $0.712 and then $0.709.
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