FX levels to watch: EUR/USD, GBP/USD and AUD/USD
EUR/USD, GBP/USD and AUD/USD are pushing upwards, yet with notable resistance up ahead, challenges remain if this is going to continue.
EUR/USD heads higher after period of consolidation
EUR/USD managed to break higher from a phase of consolidation that lasted much of last week. The wider context points towards this likely being a wider retracement of the $1.1514-$1.1234 sell-off, and thus the 61.8% and 76.4% resistance levels are notable hurdles up ahead.
A break through that $1.1407 Fibonacci resistance (61.8%) would point towards a move on to the $1.1448 level, with a break through $1.1514 required to negate the wider creation of lower highs.
GBP/USD rallies into major historical resistance level
GBP/USD has continued to gain ground this week, with the prospect of a Brexit delay and rejection of a no-deal Brexit helping drive bullish sentiment for the pound. The $1.3298 level is going to be crucial here, with a rally through that level paving the way for a wider bullish outlook for the pair. Such a break would provide us with a new seven-month high and help negate the wider bearish picture for GBP/USD.
However, given the gravity of this level, there is also a possibility of a bearish reversal if we cannot overcome it. Thus, bulls should await a break before trading around it, while bears will be looking for an intraday reversal signal at this level to bring about a trading opportunity.
AUD/USD rallies into key area of resistance
AUD/USD has rallied back towards last week’s peak of $0.7207, with the pair showing signs of strength despite the sell-off which broke out from the intraday uptrend that was in place over recent weeks.
The ability to break through that previous peak is going to key in determining whether we are going to turn lower from here or not. A bearish outlook is in play should we break below $0.7142, paving the way for another leg lower. However, until then, a break through the $0.7207 level would signal a likely break towards the next resistance level of $0.7238.
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