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

EUR/USD, GBP/USD, and AUD/USD are showing signs of a bullish reversal, with the dollar coming under pressure after the recent surge.

EUR/USD rebounding from long-term trendline

EUR/USD has been turning higher from trendline resistance following a European Central Bank (ECB)-fuelled decline last week.

The wider inside trendline points towards a potential short-term resurgence from here, with the pair expected to see further upside to come. A break below $1.1223 would point towards a possible bearish shift. However, until then further upside looks likely.

GBP/USD decline unlikely to last

GBP/USD has been declining sharply over the course of the past two weeks, with markets selling the pound in the face of Brexit uncertainty.

However, in all likeliness we are looking at an Article 50 extension which should take some of the heat off the pound. Given the wider uptrend in play over the beginning of the year, a bullish turnaround looks likely before long, with a break below $1.2773 required to negate this bullish outlook.

AUD/USD trading back at key resistance level

AUD/USD has managed to rally into the notable $0.7054 resistance level this morning, marking the potential end of a bearish period for the pair. The drop into and below trendline support could have highlighted a potential for another sharp leg lower from here.

However, that has not come to fruition yet, and with a break through $0.7054, it looks likely we will see a period of upside come into play - even if that is just to kick off a retracement of the $0.7207 sell-off.

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